What is a Joint NIC Election or Agreement?
A Employers and employees can jointly elect or agree to transfer any future potential secondary NICs liability, due on certain employment income from shares and securities acquired by employees, from their employer to the employee. This facility was introduced in 2000 to help employers deal with the problem of their unpredictable NICs liability due on gains made by employees from share options. Provisions within the National Insurance Contributions and Statutory Payments Act 2004 extended this facility to include employment income derived from restricted securities and convertible securities. See Transferring Employers (secondary) National Insurance contributions (NICs) to Employees – Agreements and Joint NICs Elections for further information.
