Income Tax (Earnings and Pensions) Act 2003 section 360A

Social security contributions

Section 360A prohibits the deduction of most social security contributions from earnings for tax purposes, but allows a limited exception for certain employer contributions.

• No deduction from earnings is permitted for any social security contribution paid under the Social Security Contributions and Benefits Act 1992 or its Northern Ireland equivalent.
• An exception applies to employer's contributions (secondary Class 1, Class 1A, or Class 1B) where these are allowable under specific expense deduction rules.
• The employer's contributions may be deducted if they qualify under the general expenses rule, the travel expenses rules, or the rules for expenses of ministers of religion.
• Where an employee is entitled to deduct wages paid (for example, to an assistant), the associated employer's national insurance contributions on those wages may also be deductible.