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HMRC internal manual

Statutory Payments Manual

From
HM Revenue & Customs
Updated
, see all updates

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.