Class 1A NI contributions

Class 1A NI contributions

From the 6th April 2020, Class 1A National Insurance contributions (NICS) will be payable by employers in two new areas:


  1. Payments from a Sporting testimonial
  1. Termination awards

 

Note: For Sporting Testimonials, these only apply to amounts over £100,000. When using the relationships below, only report the pay that exceeds this amount. For example, if an employee is getting a £120,000 Sporting testimonial, only report £20,000 in the Sporting testimonial relationship.

 

You can set up a new relationship in the Maintain relationships window to facilitate these changes. For example, when setting up a Sporting testimonial, you can use the Add wizard to create a new relationship. When it comes the time to choose from the What type of payment is it drop-down menu, you should choose the Sporting testimonial item:




You can then Modify the Addition you just created, and tick the Is it subject to class 1A (not for P11D items) checkbox to mark this as eligible for Class 1A NICs.



 


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