NIM11516 - Class 1 NICs: reporting NICs in RTI: secondary contributor

Paragraph 1 and Paragraph 28 of Schedule 4 to Social Security (Contributions) Regulations 2001 (SSCR 2001) (SI 2001 No 1004)

For reporting NICs data under RTI, the employer is the secondary contributor determined by paragraph 1 of Schedule 4 to SSCR 2001.

The secondary contributor is:

  • for an earner employed under a contract of service, his employer (except where regulations prescribe otherwise - see below)
  • for an office-holder, a prescribed person or the person or body responsible for paying the earnings
  • the person specified by Schedule 3 to Social Security (Categorisation of Earners) Regulations 1978 - for these special cases, see details in the Employment Status Manual
  • for a mariner, the person prescribed by regulation 122 of SSCR 2001.

For more information, see NIM33710.

Succession to business

Paragraph 28 of Schedule 4 to SSCR 2001 provides that where there鈥檚 been a change in the employer in respect of an employment, the new employer becomes responsible for reporting NICs.

This is particularly relevant under 鈥榚nd of year鈥� reporting because it makes the new employer responsible for the end of year return. It ensures a succeeding employer fulfils reporting obligations for Class 1A.