NIM13001 - Class 1A NICs: Liability for Class 1A NICs: Introduction
Class 1A NICs were introduced as a new class of NICs on 6 April
1991, payable by employers on the provision of cars and car fuel
benefits made available for the private use of directors and
employees within employment covered by Part V, Chapter II of ICTA
1988.
From 6 April 2000 liability for Class 1A NICs was extended to
cover most taxable benefits in kind.
Guidance on liability for Class 1A NICs:
- prior to 6 April 2000 is contained at NIM17500 onwards
- from 6 April 2000 is contained at NIM13020 onwards
Although the principal conditions establishing liability for
Class 1A NICs post 6 April 2000 were retained after the extension
of Class 1A NICs to most benefits in kind, some changes were made.
These included the introduction of a new method of calculating the
total amount of Class 1A NICs due in any one tax year and, for the
first time, the possibility that someone other than a
person’s employer could be liable to pay Class 1A NICs.
Where you are seeking to collect outstanding Class 1A NICs
for periods prior to 6 April 2000 you should consult
NIM17500 for guidance appropriate to the
particular circumstance.
