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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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NICs avoidance: employment income provided through third parties: remittance basis applies for income tax

If the relevant step that gives rise to an amount of employment income under Part 7A of ITEPA 2003 is not a payment of a sum of money, and the remittance basis applies, then the employer does not apply PAYE to that employment income. See EIM11813.

For guidance about what the remittance basis is see RDRM31010.

There is no remittance basis for NICs. In such cases, the employer must apply Class 1 NICs to the full amount that counts as employment income, without any reduction for the remittance basis. So the amounts subject to PAYE and NICs will be different.

For guidance about when Class 1 NICs liability may arise on an amount which counts as employment income under Part 7A of ITEPA 2003, see NIM52150.