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Class 1 contributions are payable by employed earners ('primary contributions') and by their employers ('secondary contributions') on all earnings paid to the employee (or to someone else on the employee's behalf) for their own benefit¹. For convenience, these contributions are referred to in this text as employee's and employer's contributions respectively, and 'the primary contributor' and 'the secondary contributor' are similarly referred to as the employee and the employer respectively. The main guidance on how to distinguish between employment and self-employment, for both tax and NIC purposes, is contained within Division E4.2. It is also fair to say that, if someone is an employee for tax purposes, they can be expected to be treated as an employee for NIC purposes too (exceptions to this general rule are identified as and when they arise, both within this material, and within Division E4.2).

However some brief reference to definitions, which have been derived from NIC legislation, and apply for NIC purposes specifically, are provided below. These are provided both for historical reference, and as the terms