Class 1A NICs for 2023-24 are payable if you have provided employees with taxable benefits for that year. You are also required to pay them on payments of more than £30,000 that you make to employees when their employment ends, for example, if they are paid termination or redundancy payments.
When to pay
When you pay Class 1A National Insurance contributions depends on whether they are work benefits or termination awards.
If work benefits, you need to pay contributions by 22 July 2024 (for the tax year 2023-24). You will need to pay by 19 July 2024 if paying by post, for example, sending a cheque.
Class 1A due on termination payments is settled via PAYE.
You can make online payments via your bank software, set up a direct debit – in which case the payment will be collected by HMRC – or pay by debit or a corporate credit card.
Be sure to quote the correct tax reference number when making the payment. This will normally be printed on the formal notice to pay Class 1A NIC, sent by HMRC.
Other ways to pay contributions on work benefits
Make sure you pay HM Revenue and Customs (HMRC) by the deadline. You may have to pay interest and penalties if your payment is late.
The time you need to allow depends on how you pay.
Same or next day:
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approve a payment through your online bank account
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online or telephone banking by Faster payments or CHAPS
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online by debit or corporate credit card
3 working days
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Direct Debit (if you have set up one for HMRC before)
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online or telephone banking by Bacs
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by cheque through the post
5 working days
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Direct Debit (if you have not set up one for HMRC before)
If the deadline falls on a weekend or bank holiday, your payment must arrive in HMRC’s bank account on the last working day of the week (unless you are paying by Faster Payments using online or telephone banking).
