Employment Related Securities Manual

ERSM110520 - Securities Options: deductible amounts: employer's NICs met by employee

Where an employee has entered into an agreement with the employer to pay the employer바카라 사이트檚 (secondary) NICs, or a joint NICs election under which the employer바카라 사이트檚 NICs is transferred to the employee, the amount of employer바카라 사이트檚 NICs is relievable by deduction from the amount treated as employment income under ITEPA03/S476 - see ITEPA03/S481.

It is only deductible in computing the Income Tax liability, not that for NIC.

NIC agreement

Where the employer바카라 사이트檚 NICs is transferred under an agreement, the amount of relief is the amount of employer바카라 사이트檚 NICs that the employer received from the employee on or before 5 June in the tax year following that in which the gain is realised.

NIC election

Where a joint election is entered into, the amount of relief is the NICs for which employee is liable.

Election withdrawn

If the approval of the joint election is withdrawn, the amount of relief is limited to the amount of the liability met before 5 June in the tax year following that in which the gain is realised. 바카라 사이트淎pproval바카라 사이트� means approval by HMRC under paragraph 3B of Schedule 1 to the Social Security Contributions and Benefits Act 1992.

There are separate provisions that apply where a Special Contribution under section 2(1)(a) Social Security Contributions (Share Options) Act 2001 has replaced the liability to pay Class 1 NICs.