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HMRC internal manual

National Insurance Manual

Class 1A National Insurance contributions: Special Class 1A NICs cases: Third party Benefits: Provision of benefits arranged or facilitated by the employer

Sections 10(2), 10ZA and 10ZB of the SSCBA 1992 Where the employer has arranged or facilitated an award which is made by a third party, see

NIM16353, liability for any NICs due on that award remains with the employer. There is no exception to this rule. Any NICs liability, whether that is for Class 1 or Class 1A NICs, remains with the employer.

If the award, arranged or facilitated by an employer is made up of

  • cash, cash vouchers or non-cash vouchers – Class 1 NICs will be due
  • benefits in kind – Class 1A NICs will be due.Employers should ensure that they are provided with sufficient information by the third party to allow them to calculate the NICs that are due.

If either the employer or the third party discharges the employee’s tax liability on these awards, Class 1A NICs are due on the payment of the tax.

For guidance on stolen credit card reward payments made by third parties see NIM02108.

If the employer has not arranged or facilitated the award, see NIM16355.