Commentary

A6.952 Class 1 National insurance

Administration and compliance

A6.952 Class 1 National insurance

A6.952 Class 1 National insurance

There are a number of potential dangers relating to NIC. An employer will be responsible for any liability as HMRC will regard an error as a failure to operate PAYE correctly. As a result they will be responsible for both employers' and employees' National Insurance. Unlike most errors, National Insurance mistakes could result in refunds. The typical errors include:

  1.  

    •     use by the employer of an incorrect National Insurance category letter

  2.  

    An employer must decide which of the many category letters to use to calculate the National Insurance due (there are over 20). The amounts

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