News added on 19.06.2014


National Insurance

How to pay Class 1A NI

HMRC’s latest employer bulletin was issued yesterday on 18 June 2014 and sets out how you should pay your Class 1A NI for the year ended 5 April 2014. What do you need to know?

Deadline fast approaching. Class 1A NI is due on certain benefits and expenses declared on P11Ds and the liability summarised on a Form P11D(b) which, together with the P11Ds, need to be sent to HMRC by 6 July 2014. If you’re paying electronically, Class 1A NI for the tax year ended 5 April 2014 must be in HMRC’s bank account by 22 July 2014.

Tip. 22 July 2014 is a Sunday so it’s best to make sure payment is made by Friday 20 July 2014 to avoid it being recorded as late.

Making the payment. You need to make sure the payment for Class 1A NI is allocated to the Class 1A NI charge for 5 April 2014 rather than shown as a 2014/15 PAYE/NI payment. Otherwise, you’ll end up being bombarded with payment reminders by HMRC for Class 1A NI.

Tip. To ensure the Class 1A NI payment is allocated correctly by HMRC, in the reference field for your electronic payment, use your 13-digit accounts office reference followed by  "1413". For example, if your accounts office reference is 123PA00012345, then you would use 123PA000123451413 (with no gaps). The 14 lets HMRC know that it’s for the 2013/14 tax year and the 13 shows that the payment relates to Class 1A NI.

Class 1A NI due on P11D benefits needs to be paid to HMRC by 22 July 2014.To ensure your Class 1A NI payment is allocated correctly by HMRC, use your 13-digit accounts office reference followed by “1413”.

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