For an employee who has to pay their children’s school fees, is there a difference for National Insurance contributions (NICs) purposes between: (a) the employee contracting with the school and the employer paying the employee’s bill; and (b) the employer contracting with the school? 

Arthur replies: 

In the first case, this benefit-in-kind is subject to Class 1 NICs, whereas in the second case, this benefit-in-kind is only subject to Class 1A NICs. See HMRC’s guidance at www.gov.uk/expenses-benefits-school-fees-for-employees-child.