Where a car benefit charge under section 120 of ITEPA 2003
(before 6 April 2003 – section 157 of ICTA 1988) does not
apply, for example because the vehicle is not within the definition
of a car for tax purposes, a liability for Class 1A NICs still
arises if the vehicle is otherwise chargeable to income tax under
ITEPA 2003 (before 6 April 2003 – under Schedule E) under an
alternative charging section.
The amount of Class 1A NICs due in these cases is calculated
on the cash equivalent of the benefit determined for tax purposes
under the charging section applied, for example, section 203 of
ITEPA 2003 (before 6 April 2003 – section 154 of ICTA 1988).
Guidance on vehicles which are not defined as cars is
available at EIM23020 (before 6 April 2003 - SE23020).
Guidance on the Class 1A NICs position for cars provided
before 6 April 2000, which are not subject to a car benefit charge
under section 157 ICTA 1988, is available at
NIM17500.
