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HMRC internal manual

National Insurance Manual

NICs avoidance: investigating avoidance: gathering facts - from an employed earner’s family member

For general guidance about information and inspection powers for NICs, see NIM60400.

Class 1 NICs liability arises when a payment is made to, or for the benefit of, an employed earner (includes employees and directors), see NIM02015.

When trying to determine whether Class 1 NICs liability arises, if amounts have been paid to, or benefits enjoyed by a family member (includes spouse, partner, siblings, child, etc.), and there is an assertion that the employee/ director has not benefited from the arrangement, consider requesting information from the alleged beneficiary, see CH207325 and NIM47000.