National Insurance contributions that relate to employee benefits are known as Class 1A National Insurance contributions. Employers must pay these National Insurance contributions on most work-related benefits provided to employees, such as a company mobile phone or other non-cash perks.
Class 1A National Insurance also applies to certain termination payments. For example, employers may need to pay Class 1A National Insurance contributions on payments exceeding £30,000 made when an employee’s employment ends, such as redundancy or other termination awards. However, this only applies where Class 1 National Insurance has not already been charged on those amounts.
Timing of payment depends on the nature of the liability. For benefits in kind, Class 1A National Insurance is generally payable annually, with payment due by 22 July following the end of the tax year (or 19 July if paying by post). The payment of Class 1A National Insurance on termination awards is dealt with through PAYE at the time the payment is made.
Late payment can result in interest and penalties, so ensuring timely reporting and payment is important.
by Admin
Share
STAY IN THE LOOP
Subscribe to our free newsletter.
A recent ruling has determined that targeting individuals online, even on a private group chat, can lead to a loss of employment. A Mr. Y was employed by the Royal Mail as a delivery driver with an
Companies and other organisations that are liable for Corporation Tax must ensure they register with HMRC at the correct time. Failing to register when required could result in missed filing
Businesses seeking investment through the Seed Enterprise Investment Scheme (SEIS) or Enterprise Investment Scheme (EIS) can benefit from obtaining advance assurance from HMRC before approaching
Employers providing loans to employees or directors need to ensure they correctly calculate any taxable benefit using HMRC’s official rate of interest. Where a loan is provided at no interest or at a