Off payroll working (IR35) ― particular NIC points

By Tolley
Off payroll working (IR35) ― particular NIC points

The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Off payroll working (IR35) ― particular NIC points
  • Office-holders
  • The normal position
  • National insurance deeming rules
  • How the deeming provisions affect IR35
  • Cross-border workers

This note sets out the key differences between the tax rules for IR35 and those for NIC.

For an outline of IR35, see the Personal service companies ― overview guidance note. For the rules, see the Anti-avoidance rules ― off payroll working (IR35) guidance note. For the calculation methodology, see the Off payroll working (IR35) ― calculating the deemed employment payment guidance note.


The tax rules for IR35 were extended to include office-holders for 2013/14 onwards but HMRC’s view is that no separate NIC legislation was required to apply Class 1 NIC to the deemed employment payment in the case of office-holders. There is legislation on the definition of office-holders for the purposes of Class 1 NIC included in the National Insurance Contributions Act 2014, but this is only a clarification about the definition of ‘employed earner’ in the case of office-holders generally. Both tax and NIC can apply to office-holders caught by IR35 following the Finance Act 2013< extension.

More on Off payroll working (IR35) — Personal Service Companies: