NIM02960 - Tips, gratuities and service charges: class 1A national insurance contributions
Section 10(9)(a) of the SSCBA 1992 and regulation 40(2)(d) of the SS(C)R 2001
Where the conditions in the gratuity disregard are satisfied (see NIM02905) there is no Class 1 NICs liability. Although the payments are general earnings chargeable to income tax under ITEPA 2003, there will be no Class 1A NICs liability. For guidance about Class 1A NICs liability, see