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National insurance

Expert commentary and practical guidance from ICAEW related to national insurance and the UK business tax regime

In this section

Practical guidance

ICAEW's Tax Faculty produces TAXguides to provide practical support on technical areas of tax

TAXguide 19/21 Off-payroll working: cross-border issues

Off-payroll working: guidance on clients’ off-payroll working obligations when a contractor works through an intermediary such as a personal service company across borders and/or some of the parties (client, contractor, contractor’s personal service company) are non-UK resident and/or the work is not wholly carried out in the UK, how the ‘host employer’ rules in s689 ITEPA 2003 interact, and the impact of double tax treaties.

TAXguide 08/21: COVID-19: Displaced expatriate employees

This TAXguide contains correspondence between ICAEW, the Financial Secretary to the Treasury and HMRC on the statutory residence test and social security in relation to expatriate employees that have been displaced due to the impacts of the coronavirus pandemic. This TAXguide replaces TAXguide 06/21 which predated HMRC’s reply on social security contributions.

TAXguide 21/20 Employment Tax: round up of 2020/21 and a look ahead

This TAXguide collates a broad range of employment tax changes for 2020/21 and looks ahead to 2021/22. Kate Upcraft provides practical guidance on off-payroll working, national insurance exemptions, the employment allowance, termination payments, student loans, RTI matters, statutory parental bereavement pay (SPBP), and summarises benefits and expenses in the context of COVID-19.

TAXguide 02/20 Employment Allowance from April 2020

From April 2020, employers who together with their connected companies have aggregate Class 1 secondary NIC liability of £100,000 or more in the preceding tax year cannot claim employment allowance (EA). EA also becomes de minimis State Aid.

TAXguide 15/19: Employment Allowance from April 2020

From April 2020, employers who together with their connected companies have aggregate Class 1 secondary NIC liability of £100,000 or more in the preceding tax year will no longer be able to claim employment allowance (EA). EA will also become de minimis State Aid.

The tax system in review

The impact of COVID-19 continues to cast a shadow over the UK tax system, says Head of Tax Faculty Frank Haskew as he takes a look back at the previous year and predicts what is in store for the months ahead.

The hypothecated taxes debate is back

The health and social care levy has revived the concept of hypothecation, where tax revenue is assigned to a specific purpose. Head of the Tax Faculty Frank Haskew discusses how the once-shunned idea has resurfaced as the government looks for ways to meet the pandemic's huge cost.

Webinars and recordings

National Minimum Wage

This webinar from the Tax Faculty provides NMW worker definitions, NMW pay definitions, NMW hours definitions and what deductions from pay count for NMW.

Employment taxes update

Covering the key changes in the employment tax arena for this tax year

Questions and answers on UK tax issues and trends from the ICAEW Tax and VAT Helpline, a subscription service provided by Markel Tax.

Markel Tax FAQs are correct at the time of going to press. To check current validity, please call the ICAEW Tax and VAT Helpline.

Bloomsbury Core Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising more than 60 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Core Accounting and Tax Service.

National Insurance Contributions

Detailed legal and best-practice information on national insurance contributions, written for payroll managers.

PAYE procedures

A chapter outlining the pay as you earn (PAYE) system and related national insurance contribution (NIC) procedures.

Pensions and benefits

A full chapter on the taxation of pensions and benefits in the UK, written for tax practitioners.

Self-employment

A full chapter providing a practical overview of the taxation of self-employment income in the UK, including the temporary Covid-19 Self-employment Income Support Scheme (SEISS).

Remuneration strategies

Chapter containing advice on remuneration strategies and tax planning, written for anyone who advises or runs a family or owner-managed company.

National Insurance contributions

Chapter containing practical advice on national insurance contributions when incorporating a business.

National Insurance

Clearly laid-out chapter on national insurance, covering tax issues related to UK employers and their staff.

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The Library & Information Service provides a collection of eBooks as a benefit of membership. Please log in to access these titles. If you are unable to access an eBook, please see our Help and support or contact library@icaew.com.

National insurance contributions

Full chapter on NICs with sections on earnings period, aggregation, tax calculations, earners over pension age, and self-employment.

Vouchers and credit tokens exempt from income tax

Outlines the tax exemptions for vouchers and credit tokens offered to employees under the Income Tax (Earnings and Pensions) Act 2003. Includes both income tax and class 1 national insurance contributions.

Employment and self-employment

This chapter outlines UK employment taxation as it functions in the UK, with particular relevance to small businesses. It includes sections on the definition of self-employment, agency workers, non-executive directors (NEDs), national insurance contributions and the taxation of intermediaries.

Daily Telegraph tax guide 2018, The: Understanding the tax system, completing your tax return and planning how to become more tax efficient

Guide to completing a Self-Assessment tax return for 2017/18, with advice and worked examples covering key aspects of personal taxation in the UK

National Insurance contributions

This chapter focuses on National Insurance contributions (NICs) - when they're payable and how they're calculated. It illustrates the different classes of NICs with worked examples.

Payment of PAYE and NIC

A short summary of the general principles of PAYE and NIC payments, with a note on quarterly installments.

National Insurance Contributions (NIC)

An overview of National Insurance Contributions covering: National Insurance Contributions and Employees; Notional Payments of Class 1 Contributions; Annual Maximum Contributions; and National Insurance Contributions and the Self-Employed.

Pay as you earn and the collection of national insurance contributions.

This chapter explains the principles and procedures of PAYE and NICs, including the penalties for late submission of documents or payments.

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Representations

ICAEW REP 95/21 Autumn Budget 2021 representations - Building a modern tax system

A response dated 5 October 2021 to a consultation published by HMT on 30 September 2021, including ICAEW’s Tax Faculty customary pre-Budget letter to the Financial Secretary to the Treasury. It calls for the acceleration of work to build a modern tax system, while urging a “manageable pace” of transition, it cautions against implementing tax changes without consultation, such as the new Health and Social Care Levy.

ICAEW REP 66/21 Timely payment

In responding to HMRC's call for evidence on timely payment, ICAEW argues that earlier payment of income and corporation tax should not be considered until the economy has recovered and that earlier payment should not be based on in-year estimates without HMRC first demonstrating that they can be a reliable basis for earlier payment.

ICAEW REP 65/21: Tax Administration Framework Review

In responding to HMRC's consultation on the Tax Administration Framework Review ICAEW argues that the starting point of such tax reform should be significant simplification of the underlying tax rules and that HMRC needs to be given the resources and funding to give it the capacity to take on such a major piece of work.

Further support

Useful links

Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.

National Insurance on GOV.UK

Comprehensive hub linking to government guidance on National Insurance including rates and categories, National Insurance for the self-employed, and UK National Insurance for those working outside the UK.

ICAEW accepts no responsibility for the content on any site to which a hypertext link from this site exists. The links are provided ‘as is’ with no warranty, express or implied, for the information provided within them. Please see the full copyright and disclaimer notice.

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