Employee third party debt and pecuniary liability

Pecuniary liability principle
Under the pecuniary liability principle, where an employer settles a personal bill on behalf of an employee, whether Class 1 or Class 1A NIC are payable, depends on the way the bill is settled.
If the contract is with the employer and the employer pays directly to the supplier, PAYE cannot be operated and therefore it is reported on form P11D as a…