Richard Curtis highlights some key points when considering a director’s National Insurance contributions liability.
Class 1 National Insurance contributions (NICs) are paid by employees and by employers on their employees’ earnings. For most employees, their (primary) contributions are deducted from their salary for each pay period, and the employer also pays a separate (secondary) contribution on top.
Directors may be employees if they have a contract or service agreement. If not, they will be classed as an office holder. For NICs purposes, a director is any person who is formally appointed as a director of a company, or who acts as a director,
