NIM18010 - Class 1B NICs : Liability : What are Class 1B NICs?
Class 1B NICs were introduced on 6 April 1999. They are payable
whenever an employer enters into a PAYE Settlement Agreement (a
PSA) for tax. They allow employers to deal with NICs on items
included in PSAs in the same manner as the tax – that is, in
a lump sum after the end of the tax year.
Class 1B NICs are payable only by employers and payment does
not provide any benefit entitlement for individuals.
Class 1B NICs are payable on
- all items contained within a PSA which would normally attract a liability for Class 1 or Class 1A NICs, and
- the total tax payable under the PSA.
(See NIM18060 for the calculation of Class 1B NICs and NIM18150 for further information regarding the conditions for liability)
- Class 1B NICs are agreed with the employer by the local PAYE Network Office and collected by the Collector of Taxes.
