On 18 October 2016, and following a consultation, HMRC confirmed that employer national insurance contributions (NICs) arising in connection with employee share schemes could continue to be formally transferred to the employee pursuant to a joint election.

The consultation had proposed abolishing the mechanism whereby an employee and employer may jointly elect to transfer a liability for employer NICs to the employee. HMRC appear, happily, to have been convinced that the formal transfer route offered by the joint election gives greater certainty than the (alternative) agreement to indemnify route.

The consultation response can be viewed here.