Deductibility of NICs
For income tax purposes, any person may not claim a deduction in respect of NICs paid1. However, this rule does not apply to secondary Class 1 contributions or Class 1A and Class 1B contributions paid by an employer in respect of employees2.
It would seem therefore that primary NICs which are paid by traders who are employers (except where the employer has a limited right to claw back such contributions from the employee) cannot qualify for relief, if the employer bears the cost of these contributions.
For corporation tax purposes, employers' Class 1, Class 1A and Class 1B National Insurance contributions are deductible from trading income3.
Deductibility of insurance premiums for employees
Where an employer pays the premiums
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Web page updated on 17 Mar 2025 13:16