Circumstances

Where the employer pays a director's personal bills and charges the payment to his or her loan account and the transactions make the account overdrawn (or more overdrawn) and it is normal practice for the employer to pay the director's earnings into the same account

Class 1 NICs

Yes - on the amount or additional amount overdrawn

PAYE

No

Enter on P11D

Yes - section B

Class 1A NICs

No

Enter on P9D

No

Further information

NIM12018