NIM16356 - Class 1A NICs: Special Class 1A NICs cases: Third party benefits: Non-cash vouchers provided to employees earning at a rate of less than £8500 a year

One of the conditions which provides for a Class 1A NICs liability to arise is that the person receiving the benefit is within Part V Chapter II ICTA 1988, see NIM13080. An exception to this rule occurs where a third party provides non-cash vouchers.

All non-cash vouchers provided by third parties, which are not otherwise excluded from NICs, attract a Class 1A NICs liability irrespective of the level of the employee’s earnings.

Details of those non-cash vouchers which are exempt from Class 1 NICs are given at NIM02416.