For simplicity, we use the word "pay" throughout this guide to cover any sort of payment for a job. It includes such things as wages, salary, fees, overtime, bonus, leave and holiday pay, commission, tips, gratuities and such like.

All employees are taxable and liable for NICs on all of their pay. Tax is deducted through the PAYE system and employees’ NICs are also deducted from the pay.

Employees are also taxable and liable for NICs on benefits and expenses payments, but things are not so simple.

The quick guide to whether tax and NICs are due tells you:

• which expenses and benefits are taxable and liable for NICs
• how to deal with them.

There is more detailed information if you need it.

If you follow these links you will find a brief explanation of what we mean by expenses and benefits.