NIM18060 | Class 1B NICs: liability: calculation: general

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

Class 1B are payable on:

• the value of all items covered by the PAYE Settlement Agreement (PSA) which would normally give rise to a Class 1 or Class 1A liability

• the total amount of tax payable by the employer under the PSA.

Class 1B NICs will be due on the total tax payable under the PSA regardless of whether the PSA includes any items which would normally be liable for Class 1 or Class 1A NICs.

The table below shows the appropriate Class 1B rate for PSAs entered into for the years identified.

See NIM18080 for an example of how to calculate Class 1B NICs.