Expenses and benefits in kind : a guide to tax and NICs: Tool allowances  

Circumstances

Where an employee is given an allowance that is used to buy tools that are only used for work

Class 1 NICs

No

PAYE

No

Enter on P11D

Yes - section N

Class 1A NICs

No

Enter on P9D

No

Further information

EIM21610 and NIM06230

A dispensation can be given for this.

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