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What expenses are liable to National Insurance contributions?
For example, if you arrange a phone contract, but it is reimbursed by the employer, it counts as earnings, so the employer must add the amount reimbursed to your earnings and deduct and pay Class 1 National Insurance and PAYE tax through the payroll.
If the inclusion of such expenses takes your gross earnings above the Upper Earnings Limit (£866 per week in 2017-18), you will not pay extra NICs, but you are still liable to income tax. Examples include travel and subsistence expenses and mileage allowances.
Reimbursement of actual costs and the payment of mileage allowances within the HM Revenue and Customs authorised limits will be exempt from the figure used to calculate NICs.