NIM02005 - Class 1 NICs: Earnings of employees and office holders: Introduction

Section 3(1)(a) & Section 6(1)听of the Social Security Contributions and Benefits Act 1992

Earnings which an employed earner receives from an office or employment are liable for the payment of Class 1 NICs (see NIM01000).

Section 3(1)(a) of the Social Security Contributions and Benefits Act 1992 defines what are earnings for the purposes of NICs (see NIM02010), and section 6(1) of the same Act prescribes the circumstances in which Class 1 NICs are payable on any such earnings (see NIM02015).

Where an employee is subject to UK legislation as an employed earner and is:听

  • in the UK, or听听

  • treated as if they are in the UK听听

at the time the work is carried out, then听Class 1 NICs liability arises at the time the earnings are earned, and the Class 1 NICs liability is assessed and payable when the earnings are actually paid.听听

This applies even if the听employee is听no longer subject to UK legislation when听those听earnings are actually paid.听