You must pay Class 1A National Insurance contributions on work benefits you give to your employees, such as a company mobile phone.
You must also pay them on payments of more than £30,000 that you make to employees when their employment ends, such as a redundancy payment (‘termination awards’).
You only have to pay Class 1A National Insurance contributions on termination awards if you have not already paid Class 1 National Insurance contributions on them.
There’s different guidance on payment of Class 1A National Insurance on sporting testimonials.
When to pay
When you pay Class 1A National Insurance contributions depends on whether they are work benefits or termination awards.
You need to pay contributions on work benefits by 22 July each year for the previous tax year. You’ll need to pay by 19 July if paying by post.
You pay contributions on termination awards through PAYE.
Ways to pay - work benefits only
Make sure you pay HM Revenue and Customs (HMRC) by the deadline. You may have to pay interest and penalties if your payment is late.
The time you need to allow depends on how you pay.
Same or next day
3 working days
- online by debit or corporate credit card
- at your bank or building society
- Direct Debit (if you’ve set one up with HMRC before)
- by cheque through the post
5 working days
- Direct Debit (if you have not set one up with HMRC before)
If the deadline falls on a weekend or bank holiday, your payment must arrive in HMRC’s bank account on the last working day of the week (unless you’re using Faster Payments).