06: How NICs are paid

Employers deduct class 1 NICs from their employees’ remuneration and pay them to HM Revenue and Customs (HMRC) under the PAYE system together with the employer’s contributions and any income tax that has been deducted from pay. HMRC carries out inspection visits to employers to check whether they are calculating NICs correctly on all remuneration and taxable benefits.

Self-employed people pay class 2 NICs directly to HMRC by direct debit or quarterly invoices. Class 4 NICs are paid under self-assessment and included on tax returns.