Paying Class 1A National Insurance: use the tax-year reference, not an ordinary PAYE reference

Class 1A National Insurance on taxable employee benefits is reported after the tax year and then paid separately. For benefits provided in 2025 to 2026, electronic payment must clear HMRC by 22 July 2026, and the employer needs the correct Accounts Office reference plus the special year-and-payment suffix so HMRC allocates the money correctly.

Class 1A NIC is generally based on taxable benefits reported after year end

HMRC's 2026 Class 1A guidance says employers calculate the contribution on the cash equivalent of benefits that are liable to Class 1A National Insurance. The amount is reported through the P11D(b) process unless the relevant benefits are dealt with through another approved payroll route.

Reconcile the Class 1A liability to the benefits reporting before paying. A bank transfer should never be the first time finance sees the total. Payroll or benefits teams should explain the underlying company cars, medical cover or other benefits that created the charge.

Benefits provided in 2025 to 2026 use the 15 percent secondary NIC rate

HMRC says the Class 1A rate follows the employer's secondary Class 1 NIC rate in force during the tax year in which the benefit was provided. For the 2025 to 2026 tax year, the relevant Class 1A rate is 15 percent.

The payment happens in the following tax year, but that does not mean finance should use whatever employer NIC percentage happens to apply on the payment date. Link the calculation to the benefits year shown on the P11D(b).

Electronic payment for 2025 to 2026 must clear by 22 July 2026

HMRC's June 2026 Employer Bulletin says electronic Class 1A NIC payments for the year ended 5 April 2026 must clear into HMRC's account by 22 July 2026. Postal cheque payments have the earlier 19 July deadline.

Allow for bank clearing time. Faster Payments can be quicker than Bacs, but the legal test is when cleared funds reach HMRC, not when the finance employee created the payment instruction. Put the date into the annual payroll-tax calendar.

For July 2026, add 2613 to the 13-character Accounts Office reference

HMRC says employers paying Class 1A NIC for 2025 to 2026 should use the normal 13-character Accounts Office reference followed by 2613, with no spaces. The 26 identifies the tax year ended 5 April 2026 and 13 identifies Class 1A NIC.

This is deliberately different from an ordinary monthly PAYE payment. If the employer sends the money using only the basic Accounts Office reference, HMRC can allocate it to the wrong PAYE period and continue showing the Class 1A bill as unpaid.

Use an approved electronic method and verify bank limits

HMRC supports electronic payment methods that can clear same day, next day or within three working days depending on the route. For a large benefits programme, Class 1A can be a significant one-off payment compared with normal monthly payroll tax.

Check the banking limit several working days before 22 July. A £400,000 Class 1A payment can fail operationally if the finance user has only £100,000 authority. Arrange the necessary approver or payment method before the final day.

Match the P11D(b), HMRC account and bank payment

Keep the benefits calculation, P11D(b), payment reference and bank confirmation in one annual file. After payment, check the HMRC account to ensure the liability clears against the correct year.

If employees made good benefits before the relevant deadline, confirm that those adjustments were reflected in the Class 1A calculation. Do not fix a reporting error by changing the bank payment without changing the underlying return or calculation that tells HMRC what the employer owes.

Run a simple year-end benefits bridge before filing P11D(b): prior-year Class 1A, new benefits, removed benefits, employee making-good adjustments and current-year taxable values. If the calculated liability changes materially, finance can see why. That is safer than approving a six-figure July payment based only on the output line from payroll software.

For groups with several PAYE schemes, label the bank payment with the correct employer reference and retain a scheme-by-scheme schedule. A common treasury account may fund several entities, but HMRC allocation still depends on each employer's reference. One group payment without clear allocation can leave multiple subsidiaries appearing unpaid.