DANSP33000 - Notices of decision: Wording of National Insurance contributions liability decisions: Period covered by Class 1B National Insurance contributions liability decisions - HMRC internal manual - GOV.UK

The general principles about liability decisions explained in DANSP30700 apply to Class 1B National Insurance contribution (NIC) liability decisions.

Class 1B NIC are generally payable when an employer enters into a PAYE Settlement Agreement (PSA) for tax. They are payable on the tax calculated in the PSA and

Class 1B NIC are payable only by employers and payment does not provide any benefit entitlement for individuals. They have to be paid no later than the 19 October following the end of the

tax year in which the items included in the PSA were provided. The period you show in the decision is the tax year covered by the PSA and for which Class 1B NIC liability is disputed.

DANSP26700 explains about raising a charge on the Strategic Accounting Framework Environment (SAFE) system.

R Ltd contacts their local tax office and enters into a PSA. After submission of earnings details they are unable to agree that one of the benefits included in the PSA would have been liable

for Class 1A NIC, had they not been included in the PSA, and dispute that Class 1B NIC are now due. The income tax position is not in dispute.

R Ltd is liable to pay Class 1B contributions in respect of benefits and expenses included in a PAYE Settlement Agreement for the period from 6 April 2020 to 5 April 2021.

The Class 1B contributions R Ltd is liable to pay are £2,529.67.