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HMRC internal manual

National Insurance Manual

Class 1A National Insurance contributions: Special Class 1A NICs cases: Third party benefits: Taxed award schemes

Employers taxed award schemesEmployers and third parties, may give employees non-cash incentive awards such as gift vouchers or holidays.

Taxed award schemesAn employer or third party can enter into a special arrangement with HMRC to pay the tax and NIC due, on any award they make to employees. These arrangements are called taxed award schemes (TAS).

HMRC’s Incentive Award Unit (IAU) set up TASs with employers and third parties. Contact the IAU for information about TASs.

The IAU will issue annual returns and collect any Class 1 and or Class 1A NICs that are due.