Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

National Insurance Manual

HM Revenue & Customs
, see all updates

Class 1B NICs: liability: what are class 1B Nics?

Class 1B NICs are payable only by employers and payment does not provide any benefit entitlement for individuals.

Class 1B NICs are payable on

  • all items contained within a PSA which would normally attract a liability for Class 1 or Class 1A NICs, and
  • the total tax payable under the PSA.

(See NIM18060 for the calculation of Class 1B NICs and NIM18150 for further information regarding the conditions for liability)

Class 1B NICs are agreed with the employer by the local PAYE Network Office and collected by HMRC.