Chapter 5 - Class 1A and 1B NIC

Question 1

1A and 1B

Answer 1

Paid by employers only. Class 1A is paid on cash equivalent of certain benefits at 13.8%, Due in one sum on the 22nd July electronically or the 19th if not.

Class 1B is paid on earnings which are included in a PSA at 13.8%. Due annually on the 22 Oct following th tax year electronically or 19th if not.

Question 2

Class 1A

Answer 2

Paid on cash equivalent of taxable benefits like company cars and fuel, living accommodation and beneficial loans. There is no Class 1A if there is no associated income tax liability ie benefits that already attracted Class 1 Secondary.

Question 3

Class 1B

Answer 3

PSA benefits. This is for minor or irregular benefits and expense payments.