Don’t forget to pay your Class 1A NICs

Employers are reminded that Class 1A National Insurance contributions (NICs) for the 2025–26 tax year must be paid by 19 July 2026 (or 22 July 2026 if paying electronically) to avoid penalties. These payments relate to the benefits in kind provided to employees and directors, and on Class 1A NICs on benefits, termination payments and sporting testimonial payments.

Class 1A NICs are payable on most taxable benefits in kind such as company cars, private medical insurance and other employment-related benefits provided to employees, directors, and their families or household members. 

They are also due on the taxable element of certain termination payments above £30,000, where Class 1 NICs have not already been paid. In addition, employers should note that Class 1A NICs may also apply to sporting testimonial and similar payments, depending on how they are treated under employment income rules.

To ensure payments are allocated correctly, employers must use their Accounts Office reference number and clearly identify the relevant tax year. Class 1A NICs paid in July will always relate to the preceding tax year.

The important dates to be aware of for 2025–26 Class 1A NICs are:

• 6 July 2026 – Submission deadline for forms P11D and P11D(b)
• 19 July 2026 – Deadline for postal payments to reach HMRC
• 22 July 2026 – Deadline for electronic payments to clear HMRC’s bank account

Employers should ensure both reporting and payment obligations are met on time to avoid penalties and interest charges.