Paying and Recovering - SMP/SAP/SPP/ShPP: who is the employer
Although the legislation makes it clear that the person who is liable to pay the secondary (employer) Class 1 NICs is the employer for SMP/SAP/SPP/ShPP purposes, it may not always be easy to:
- identify the liable employer, or
decide if an organisation is a:
- single business, or
- collection of separate businesses.
It will sometimes be necessary to consider other factors such as:
- who the employee’s contract of service is with
- who pays the employee
- whether employees are moved from one part of the organisation to another
- whether there is a bank account for each part of an organisation or a single one for the organisation as a whole, or
- whether there is a profit and loss account for each part of an organisation or only one for the organisation as a whole.