NIM16220 - Class 1A National Insurance contributions: Special Class 1A NICs cases: Payments made by employers to earners in full-time education
Regulation 25 and 40(2)(ab) and paragraph 12 of Part 7 of Schedule 3 to the Social Security (Contributions) Regulations 2001 (SSCR 2001) (SI 2001 No 1004)
NIM02402 explains when payments made by employers to employees to support them while they are in full-time education at a university, college or school or other educational establishment, can be disregarded from earnings so that Class 1 NICs liability cannot arise. If the payments are disregarded from earnings for Class 1 NICs purposes, regulation 40(2)(ab) of the SSCR 2001 exempts such payments from Class 1A NICs liability. »Ê¹ÚÌåÓýapprefore, there can be no Class 1A NICs liability.
EIM06205 explains the income tax position.