NIM02230 - Class 1 NICs : Earnings of employees and office holders : Medical cover

Liability for NICs is dependent on who makes the contract with the medical insurance provider.

  • If the employer enters into a contract to provide private medical insurance for the workforce and pays the premiums :
    • the payments are disregarded for Class 1 NICs purposes
    • the payments will be liable for Class 1A NICs. For information regarding the general principles applying in relation to Class 1A NICs see NIM13000.
  • If the employer enters into a contract to provide private medical insurance for a director/employee and the director/employee then extends that insurance to cover their family and the employer pays the whole of the premiums :
    • that part of the premium which relates to the director/employee바카라 사이트™s family is earnings for Class 1 NICs purposes because the employer is simply meeting the employee바카라 사이트™s debt in respect of the additional premiums; and
    • the remainder (which provides insurance cover for the director/employee) will be liable for Class 1A NICs.
  • If the employee enters into a contract to provide private medical insurance and the employer agrees to pay the premiums, the employer is discharging the employee바카라 사이트™s debt and so the payments must be included in gross pay for Class 1 NICs purposes.

See NIM02010 for general guidance regarding the meaning of 바카라 사이트śearnings바카라 사이트ť.