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) of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)

Regulations 145 and 146 Social Security (Contributions) Regulations 2001 (SSCR 2001) (SI 2001 No 1004)

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 the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) on an amount of general earnings, see NIM13070
• the benefit must be provided to a director, or to an employee within the benefits code, 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.