“No Class 1A NIC to pay” declaration – clarification from HMRC

Employers with no liability to Class 1A NIC need only complete the declaration if they are sent a notice to file 

In our news item last week, No Class 1A NIC” declaration removed from Basic PAYE Tools, we noted that HMRC had removed this declaration from the final RTI return process, and that this raised some questions for employers.

The ICAEW Tax Faculty asked HMRC to clarify: 

  • why the “No Class 1A to pay” declaration has disappeared from HMRC’s Basic PAYE Tools and private sector payroll software given that previously it could conveniently be completed at the same time as the final FPS/EPS, and

  • whether every employer who has no liability to Class 1A NIC has to submit the No Class 1A to pay declaration

We are pleased to report that HMRC has helpfully confirmed: 

  • the disappearance of the “No Class 1A to pay” declaration was part of the removal for 2014/15 onwards of the end of year (EoY) questions in the final FPS/EPS which was intended to make life simpler for employers – only a relatively small percentage of employers made the No Class 1A to pay declaration when answering the EoY questions, and

  • HMRC does not expect employers to complete the ‘nil’ return to be made unless the employer has received a notice to file (P11D(b) and P30B (payslip)) from HMRC but has no Class 1A NIC to pay.

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