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HMRC internal manual

National Insurance Manual

Class 1A National Insurance contributions: Special Class 1A NICs cases: Removal benefits and expenses: Position from 6 April 2000

Section 10(1) of the SSCBA 1992All removal benefits exempt from income tax under ITEPA 2003 (before 6 April 2003 – exempt from income tax under Schedule E) are exempt from Class 1A NICs, see

NIM16265. That is because Class 1A NICs are only due on general earnings chargeable to income tax under ITEPA 2003 (before 6 April 2003 – chargeable to income tax under Schedule E).

Similarly, all removal benefits subject to income tax under ITEPA 2003 (before 6 April 2003 – subject to income tax under Schedule E) attract a Class 1A NICs liability, see NIM16270.

In addition to Class 1A NICs on taxable removal benefits, Class 1A NICs are also due on

  • all removal benefits and expenses which exceed £8,000, see NIM16275 and NIM16290; and
  • any taxable removal expense where no Class 1 NICs liability arises, see NIM16270. For guidance on taxable relocation expenses which are not liable for Class 1 NICs see NIM06115.