HMRC have amended their guidance on this topic to include details of the deduction for employer NIC. The amended guidance includes the following:
“Employers’ NI contributions payable in respect of a share scheme are also part of the scheme’s administrative costs.
The timing of the deductions for employers’ NI contributions will follow the accounting treatment.If an employer and employee enter into a joint election to transfer the employer’s contribution liabilities to the employee, the employer is not entitled to a deduction for employer’s NI contributions. This is because the employer will no longer have a liability for employer NI contributions.”
Related content from Claritax Books
Employee Share Schemes, written by chartered tax adviser and barrister Thomas Dalby, examines the range of official share schemes. The book offers clear and practical guidance for employers considering the implementation of such schemes and for their professional advisers.