NIM16366 | Class 1A National Insurance contributions: Special Class 1A NICs cases: Third party benefits: Special rules for the 2000 to 2001 tax year

Section 10ZA(4) of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)

The rules described at NIM16351 onwards apply to all third party awards made in tax year 2001 to 2002 onwards. There are special rules for awards made in the 2000 to 2001 tax year.

For the tax year 2000 to 2001 only, liability for all NICs on awards by third parties remain with the employer but the third party may choose to pay the Class 1A NICs. If the third party provider wanted to meet the Class 1A NICs liability they were required to give notice in writing to the Inland Revenue on or before 6 July 2001 that they are a person who provides benefits in respect of which they would be liable to pay Class 1A NICs rather than the employer. The employer is liable to pay if the employer arranged or facilitated the provision of the award, see NIM16353.