Before 6 April 1998, where an employer or director provided with
a car received no payment or earnings, no secondary contributor
existed who could be held liable to pay Class 1A NICs. Section
10(2) of the SSCBA 1992 was amended by section 52 of the Social
Security Act 1998, with effect from 6 April 1998 to deal with this
From 6 April 1998 onwards, where a director or employee is provided with a car which attracts a car benefit charge but no other earnings are paid, the car itself is treated as a relevant payment of earnings fro the purposes of identifying a secondary contributor.
This does not mean that Class 1 NICs are due on the cash equivalent of the car. The treating of the car as a relevant payment of earnings is solely for the purposes of identifying a secondary contributor liable to pay Class 1A NICs.
See NIM13110 where benefits other than cars are provided after 6 April 2000 but no earnings are paid.