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In order to establish the correct rate of NIC to apply, and the earnings period (see E8.248) which is appropriate, to any payment of earnings, it is essential to establish the date of that payment.

For this NIC purpose, the specific provisions which occasionally permit taxation of director's remuneration at an earlier date (ie based on dates the earnings are recognised in the company accounts, see E4.118 and E4.1109) do not apply. The question of earnings of all employees and office-holders for NIC purposes must therefore be determined in accordance with general principles. The following notes should be read in conjunction with E4.118, E4.1109 and E4.1180A.

In Garforth v Newsmith Stainless Ltd¹ it was held that payment is effected when the employee is given unfettered use of the money, either by it being paid in cash or by crediting the sum to an account on which they have unfettered power to draw. For NIC purposes, earnings will also arise when the employer meets liabilities which would otherwise fall to