NIM02405 - Class 1 NICs: Earnings of employees and office holders: Value Added Tax (VAT)
If there is an element of Value Added Tax (VAT) charged on a payment of earnings, there is no liability for NICs.
Example
A client asks a firm of accountants to provide an expert to join the company on secondment. The employing firm continues to pay the employee바카라 사이트™s salary but invoices the client company. The invoice covers the expert바카라 사이트™s salary and VAT. The VAT is not part of the expert바카라 사이트™s personal earnings and is not liable for Class 1 NICs.
If the VAT element forms part of the employee바카라 사이트™s personal earnings then a liability for NICs will arise on that element.
Example
An employer pays an employee바카라 사이트™s personal telephone bill and the bill includes charges for rental, calls and VAT. If the employer pays the total bill they are discharging the employee바카라 사이트™s personal debt and a liability for NICs will arise on the total value of the bill which is settled by the employer (including the VAT).