NIM13021 - Class 1A National
Insurance contributions: Liability for Class 1A NICs: Conditions to
be satisfied for liability to arise: General
Sections 1(6), 10(1) and 10(6) SSCBA 1992 and regulations 145
and 146 SS(C)R 2001
Before liability for Class 1A NICs can arise certain conditions
must be satisfied. These are
- residence and presence conditions in Great
Britain, see
NIM13040
- the employment, by reason of which the
benefit is provided, must be employed earner’s employment,
see
NIM13050
- the benefit must be provided to an
employed earner from, or by reason of, his employment, see
NIM13060
- the earner must be chargeable to income
tax under ITEPA 2003 on an amount of general earnings (before 6
April 2003 – the earner must be chargeable to income tax
under Schedule E on an amount which is or is treated as an
emolument), see
NIM13070
- the benefit must be provided to a
director, or to an employee within the benefits code (before 6
April 2003 – director or an employee earning at a rate of
£8,500 or more per year), see
NIM13080
- the benefit must not attract either a
Class 1 or Class 1B NICs liability, see
NIM13090.
Only where all of these conditions are satisfied can a liability
for Class 1A NICs arise.
