NICs - Class 1/1a

Binary_Finance

Hi - can anyone explain in simple terms what the class 1 NICS are, what class 1a NICS are, and what's the difference?

I'm getting confused by hmrc legislation on this and would appreciate someone explaining it in layman's english?

Thanks very much.

McAzrael

Class 1s are paid by employees and employers based on the employee's wage. Class 1As are paid only by employers where the employee is provided with some taxable benefit in kind.

http://www.hmrc.gov.uk/nic/class1.htm
http://www.hmrc.gov.uk/nic/class1a-conts.htm