NIM13050 - Class 1A National Insurance contributions: Liability for Class 1A NICs: Conditions to be satisfied for liability to arise: Employed earner바카라 사이트™s employment

Section 10(1)(b) of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)

For Class 1A NICs liability to arise the person in receipt of a benefit in kind must be in employed earner바카라 사이트™s employment. An employed earner is defined in section 2(1)(a) of the SSCBA 1992.

In the majority of cases it will be clear whether the worker receiving a benefit in kind is:

  • an employee, office holder or agency worker with general earnings chargeable to income tax under Income Tax (Earnings and Pensions) Act 2003; or
  • a self-employed earner, section 2(1)(b) of the SSCBA 1992.

Usually, it is unnecessary to carry out enquiries about the employment status of a worker receiving benefits. Where there is any doubt detailed enquires may need to be made. Guidance on employed earner바카라 사이트™s employment is contained in the Employment Status Manual.

Class 1A NICs are not payable in respect of benefits provided to self-employed earners but see NIM13120 where a self-employed earner provides benefits to an employee.