NIM18010 - Class 1B NICs: Liability: what are Class 1B NICs?

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 PT Operations or Customer Compliance Group, and collected by HMRC.