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HMRC internal manual

National Insurance Manual

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NICs avoidance: employment income provided through third parties: Employer Financed Retirement Benefit Schemes - amount treated as earnings for NICs purposes

Part 7A of the Income Tax (Earnings and Pensions) Act 2003

Regulation 22B of the Social Security (Contributions) Regulations 2001

Many EFRBS arrangements set up to provide retirement benefits, use third parties to administer the arrangements, for example trustees. So, there are circumstances where Part 7A of ITEPA 2003 will apply so an amount counts as employment income. This amount is treated as remuneration derived from an employment, and therefore is earnings for NICs purposes if not already earnings.

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.