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HMRC internal manual

National Insurance Manual

Class 1A National Insurance contributions: Special Class 1A NICs cases: Treatment of benefits trivial in amount

If a benefit is trivial in amount, strictly speaking, if the conditions in NIM13021 are satisfied, Class 1A NICs are due. Some employers choose to settle income tax and NICs liabilities on small or one-off benefits via a PAYE Settlement Agreement, see NIM14400.

Where employers do not settle liabilities via a PAYE Settlement Agreement, when considering whether to pursue Class 1A NICs liability on benefits trivial in amount, bear in mind HMRC’s responsibility not to impose unnecessary regulatory burdens on employers. Where you consider that the benefit is trivial in nature refer to guidance in EIM21860 and EIM21863. If you conclude that the employer does not have to show the benefits on forms P11D, you should not

  • collect Class 1A NICs that may be due, nor
  • impose any penalties for failure to complete form P11D(b) or for incorrectly completing form P11D(b).When you send a letter to the employer as per EIM21862, tell the employer that

  • Class 1A NICs will not be requested or collected, and
  • The employer is not required to include the benefits on form P11D(b).