Commentary

B2.425 Employees—National Insurance, insurance and related payments

Business tax
Business tax | Commentary

B2.425 Employees—National Insurance, insurance and related payments

Business tax | Commentary

B2.425 Employees—National Insurance, insurance and related payments

Deductibility of NICs

For income tax purposes, any person may not claim a deduction in respect of NICs paid1. However, this rule does not apply to secondary Class 1 contributions or Class 1A and Class 1B contributions paid by an employer in respect of employees2.

It would seem therefore that primary NICs which are paid by traders who are employers (except where the employer has a limited right to claw back such contributions from the employee) cannot qualify for relief, if the employer bears the cost of these contributions.

For corporation tax purposes, employers' Class

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