NIM16050 - Class 1A National
Insurance contributions: Special Class 1A NICs cases: Cars provided
for private use: Leased cars and leasing arrangements
Liability for NICs on leased cars or cars made available under
leasing arrangements will depend upon who is actually leasing the
car. If a car is leased by the
- employer or someone on behalf of the
employer, and the employer makes the car available to the employee,
a Class 1A NICs liability will arise providing the benefit from the
car is taxable as general earnings under ITEPA 2003 (before 6 April
2003 – taxable as emoluments under Schedule E)
- employee through independent arrangements,
so that the employee has not obtained the car on those terms and
conditions by reason of his employment, see EIM23062 (before 6
April 2003 – see SE23062), there is no Class 1A NICs
liability. There may, however, be a Class 1 NICs liability if the
employer pays the leasing costs for the employee or reimburses the
employee the leasing costs, see
NIM02270.
For guidance about Employee Car Ownership Schemes or Plans see
NIM05770 and EIM31500.
