HMRC internal manual

National Insurance Manual

NIM52750 - NICs avoidance: employment income provided through third parties: effect of income tax relief on NICs position section 222 ITEPA

If income tax relief is given under section 554Z14 of ITEPA 2003, see NIM52700.

Where section 554Z14 applies, the employee will qualify for tax relief on any amount of income tax paid under section 222 of ITEPA 2003. For guidance about section 222 of ITEPA 2003, see EIM11951.

For guidance about the NICs position as it relates to section 222 of ITEPA 2003, see NIM06834.

If Class 1 NICs have been paid on the amount treated as earnings under section 222(2) ITEPA 2003, then the date that section 554Z14 applies will be after the end of the earnings period in which Class 1 NICs liability arose on the amount treated as earnings. In such cases, Class 1 NICs paid on section 222 earnings remain properly paid and cannot be refunded.

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.