NIM17530 - Class 1A National Insurance contributions: Liability for Class 1A NICs before 6 April 2000: Person liable to pay Class 1A NICs

For tax years 1991/1992 to 1999/2000, the person liable to pay Class 1A NICs was the person who

• was liable to pay secondary Class 1 NICs on the last or only relevant payment of earnings made to the director or employee in the tax year or, if no liability existed,
• would have been liable to pay secondary Class 1 NICs on the last or only relevant payment of earnings in the tax year, if the lower earnings limit had been removed.

In most cases the person liable to pay secondary Class 1 NICs, and as a result, Class 1A NICs, was the director’s/employee’s employer.

An exception to this could occur where a director, provided with a car, was working for more than one employer and the employer providing the car was not the employer paying the director’s earnings, see NIM17552.

See NIM17550 for guidance on cases where an employer claims that no earnings were paid to either a director or employee.