NIM13150 – Class 1A National Insurance contributions: Liability for Class 1A NICs: Table of common benefits liable for Class 1A NICs

The table below lists what are likely to be the most commonly provided benefits. The purpose of the table is to indicate whether Class 1 or Class 1A NICs are due in particular cases. The amount of Class 1A NICs due is based upon the amount of general earnings calculated under ITEPA 2003 (before 6 April 2003 – the amount of the emoluments calculated under ICTA 1988). Guidance on calculating the income tax on these benefits/payments can be found in the EIM (before 6 April 2003 – the SE Manual). The table also provides references to additional NIM guidance where special Class 1A NICs rules apply.

The table is not exhaustive but provides what are likely to be the most commonly provided benefits. Remember that individual circumstances or facts surrounding a particular benefit may influence the class of NICs due. In most cases the arrangements put in place by an employer to supply the employee with a benefit will determine whether Class 1 or Class 1A NICs are due. In some instances the ‘circumstances’ box of the table will indicate whether the contract to supply the goods or services is with the employer or the employee. See NIM13170 for the importance of this distinction for NICs.

When you use this table you should refer to the references given for the NIM and the EIM (before 6 April 2003 - the SE Manual) to ensure that you treat the payment correctly.

Type of benefit	Circumstances of provision	Class 1 Liability	Class 1A liability	NIM references	SE and EI Manual references
Assets placed at the employee’s disposal by the employer	Provided for business use and private use is not significant – except motor vehicles, boats and aircraft	No	No	NIM02020	SE21602 SE21605 SE21615 EIM21611 EIM21614 EIM21630
Assets placed at the employee’s disposal by the employer	Provided for mixed business and private use	No	Yes	NIM02020 & NIM05010	SE21602 SE21605 SE21615 EIM21611 EIM21614 EIM21630
Assets transferred to the employee but not Readily Convertible Assets	Can be turned into cash only by sale, such as furniture, kitchen appliances, property and clothes	No	Yes	NIM02020	SE21640 EIM21640
Car fuel for private motoring in a provided car	Any means of supply or purchase, except round sum allowances	No	Yes	NIM16175	SE23750 EIM23750
Car fuel for private motoring in a privately owned car	Supplied using cash, a company credit card, garage or agency card and the litany is used	No	Yes	NIM02020 NIM05800 NIM06051 NIM16170	SE21640 & EIM21640 – Provision of fuel SE16010 & EIM16010 – Credit tokens
	Supplied using cash, a company credit card, garage or agency card and the litany not used	Yes	No		SE00520 & EIM00520 – Cash SE16010 & EIM16010 – Credit tokens
	Supplied from employer’s own pump	No	Yes		SE21640 EIM21640
Car parking facilities	At or near place of work	No	No	NIM05615	SE21685 EIM21685
Car parking facilities	Elsewhere – unless the parking is part of a journey which is qualifying business travel	No	Yes	NIM05615	SE21685 EIM21685
Cars provided for private use	Where cash equivalent is more than nil	No	Yes	NIM16001	SE23001 EIM23001
Childcare help for children up to the age of 16, effective up to 5 April 2005	Provided by employer, or employer contracts with the provider – excluding school fees	No	No	NIM16100	SE21687
	Employer reimburses the employee or provides additional salary to meet the cost of childcare	Yes	No	NIM16100
Childcare benefits, (other than workplace nurseries – see below) for children up to the age of 16, effective from 6 April 2005	Provided by employer, or employer contracts with the provider up to a limit of £55 per week – excluding school fees	No	No	NIM16110	EIM21687
	Employer reimburses the employee or provides additional salary to meet the cost of childcare	Yes	No	NIM16110	EIM21687
Clothing or uniforms which can be worn at any time	Employer provided	No	Yes	NIM02020 NIM05010	SE32450 SE32475 EIM32450 EIM32475
Clothing or uniforms which can be worn at any time	Employee is reimbursed cost	Yes	No		SE00520 SE32450 SE32475 EIM00520 EIM32450 EIM32475
Clothing (protective) or uniforms which are necessary for work – may have a logo	Any circumstances	No	No		SE32470 EIM32470
Computers loaned for private use	Loaned for private use (tax years up to and including 2005/06) – First £500 of cash equivalent of benefit	No	No		SE21697 EIM21700
	Loaned for private use (tax years up to and including 2005/06) – Cash equivalent of benefit above £500	No	Yes		SE21697 EIM21700
	Loaned for private use on or after 6 April 2006	No	Yes		EIM21699
Entertaining clients		No	No	NIM05670	SE32570 EIM32570
Entertaining staff	Employer contracts	No	Yes
Entertaining staff	Employee contracts	Yes	No
Eye tests and or special corrective appliances provided on or after 6 April 2006	Conditions of section 320A ITEPA 2003 satisfied	No	No	NIM02145	EIM21765
Eyes tests and or special corrective appliances provided before 6 April 2006	Employer pays for the cost of or provides eyesight tests, spectacles required solely for VDU use, or where spectacles are for general use, but include a special prescription for VDU use, a proportion of the cost relating to the special prescription.	No	No	NIM02145	SE21765 EIM21765
Food, groceries, farm produce	Employer contracts	No	Yes	NIM02020	SE21640 EIM21640
Food, groceries, farm produce	Employee contracts	Yes	No	NIM02020	SE21640 EIM21640
Goods, such as TV, furniture etc., transferred to employee	Employer contracts	No	Yes	NIM02020	SE21640 EIM21640
Goods, such as TV, furniture etc., transferred to employee	Employee contracts	Yes	No	NIM02020	SE21640 EIM21640
Holidays	Employer contracts	No	Yes	NIM02020	SE21640 EIM21640
Holidays	Employee contracts	Yes	No	NIM02020	SE21640 EIM21640
Living accommodation provided by employer	Exempt from income tax	No	No	NIM02020	SE11300 EIM11300
Living accommodation provided by employer	Not exempt from income tax	No	Yes	NIM02020	SE11300 EIM11300
Loans, beneficial arrangements	Qualifying loans	No	No	NIM02210 NIM16670	SE26100 EIM26100
Loans, beneficial arrangements	Non-qualifying loans	No	Yes
Loans, written off	At time employer decides not to seek repayment of the loan	Yes	No
Meals provided	At canteen open to all staff or on employer’s premises and offered on reasonable scale and all employees may obtain free or subsidised meals	No	No	NIM02020	SE21670 EIM21670
Meals provided	All other circumstances	No	Yes	NIM02020	SE21670 EIM21670
Medical check ups or health screening provided by employer	One check up/health screening per year and screening/medical check up generally available to all employees or check up available to all employees identified in previous screening as needing a check up	No	No	NIM02020	SE21765 EIM21765
Medical, dental treatment or insurance to cover cost	Employer contracts	No	Yes	NIM02020 NIM02230	SE21762 EIM21762
	Employee contracts	Yes	No		SE21762 EIM21762
	Outside UK where need for treatment arises while employee is working outside UK for the employer	No	No		SE21766 EIM21766
Mobile phone provided by employer	Mobile phones provided to an employee or any family or household member, before 6 April 2006, for private use	No	No	NIM02020	SE21780 EIM21780
Mobile phone provided by employer	One mobile phone provided to an employee, on or after 6 April 2006, for private use – not provided to the employee’s family and household.	No	No	NIM02020	EIM21778
Mobile phones - cost of private calls	Employer contracts	No	Yes		SE32945 EIM32945
Mobile phones - cost of private calls	Employee contracts	Yes	No		SE32945 EIM32945
Office accommodation, supplies/services used by employees in carrying out employment (includes computers)	Private use is not significant	No	No	NIM05010	SE21601 EIM21610
Personal bills of the employee		Yes	No	NIM02270	SE00580 EIM00580
Personal Incidental expenses	Conditions for exemption satisfied	No	No	NIM06010	SE02700 EIM02710
Readily Convertible Assets		Yes	No	NIM04007	SE11803 EIM11900
Relocation expenses/benefits	Non-eligible expenses	Yes	No	NIM06110 NIM16250	SE03100 EIM03100
	Non-qualifying benefits and eligible expenses paid after the relevant day	No	Yes
	Qualifying expenses and benefits of £8,000 or less	No	No
	Qualifying expenses/benefits in excess of £8,000	No	Yes
Scholarships awarded to students because of their parent’s employment	Employer contracts	No	Yes		SE30000 EIM30000
	Employee contracts	Yes	No		SE30000 EIM30000
School fees	Employer contracts	No	Yes	NIM16105	SE21640 EIM21640
School fees	Employee contracts	Yes	No	NIM16105	SE21640 EIM21640
Social Functions	Annual parties for which conditions for tax exemption satisfied	No	No	NIM02020	SE21690 EIM21690
Social Functions	Any other type of function	No	Yes	NIM02020	SE21690 EIM21690
Sporting or recreational facilities provided by employer	Conditions for tax exemption satisfied	No	No	NIM02020	SE22850 EIM21825
Sporting or recreational facilities provided by employer	All other circumstances	No	Yes	NIM02020	SE22850 EIM21825
Subscription and fees allowed under sections 343 or 344 of ITEPA 2003 (before 6 April 2003 – section 201 ICTA 1988)	Any circumstances	No	No	NIM16150	SE32880 EIM32880
Subscription and fees not allowed under sections 343 or 344 of ITEPA 2003 (before 6 April 2003 – section 201 ICTA 1988)	Employer contracts	No	Yes
	Employee contracts	Yes	No
Staff suggestion awards	Conditions of section 321 of ITEPA 2003 satisfied (before 6 April 2003 – ESC A57)	No	No	NIM02350 NIM16300	SE06600 EIM06600
Staff suggestion awards	Conditions of section 321 of ITEPA 2003 not satisfied (before 6 April 2003- ESC A57) – award made up of cash and/or a benefit	Yes	Yes	NIM02350 NIM16300	SE06600 EIM06600
Telephones - employer contracts with supplier	Cost of rental where private use is more than not significant	No	Yes	NIM06190	SE32955 EIM21615
	Costs of calls, where private use is more than not significant	No	Yes
	Cost of all private calls reimbursed by employee	No	No
Telephones - employee contracts with supplier	Cost of rental	Yes	No
	Cost of business calls	No	No
	Cost of private calls	Yes	No
Vans, provided and made available for private use (position up to 5 April 2005)	Private use is any use other than business travel	No	Yes		SE22050 EIM22050
Vans, provided and made available for private use (position from 6 April 2005)	Private use is insignificant	No	No		EIM22700 EIM22745
	Private use is more than insignificant	No	Yes		EIM22700 EIM22745
Van fuel for vans provided and made available for private use (position from 6 April 2000 to 5 April 2005)	Fuel provided by cash, credit/debit/fuel agency card (litany not used), non-cash voucher	Yes	No	NIM16386	SE22130 EIM22068
Van fuel for vans provided and made available for private use (position from 6 April 2005 to 5 April 2007)	Fuel provided by cash, credit/debit/fuel agency card (litany not used), non-cash voucher	Yes	No	NIM16387	EIM22700
Van fuel for vans provided and made available for private use (position from 6 April 2000 to 5 April 2007)	Fuel provided from employer’s pump or by credit/debit/fuel agency card (litany used)	No	No	NIM16385	EIM22068 EIM22900
Van fuel for vans provided and made available for private use (position from 6 April 2007)	Fuel provided by whatever means for more than ordinary commuting	No	Yes	NIM16387 NIM16388	EIM22700
Workplace Nurseries	Conditions for exemption satisfied	No	No		SE21900 EIM21902
Works transport services	Conditions of section 242 ITEPA 2003 (before 6 April 2003 – section 197AA ICTA 1988) satisfied	No	No		SE21850 EIM21850
Works transport services	Conditions of section 242 ITEPA 2003 (before 6 April 2003 – section 197AA ICTA 1988) not satisfied	No	Yes		SE21850 EIM21850

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