NIM14110 - Class 1A NICs: Exemptions from Class 1A NICs liability: Table of benefits exempt from Schedule E income tax and Class 1A NICs
The table below lists those benefits exempt from Schedule E income tax by statutory authority. The same benefits are also excluded from Class 1A NICs. For further guidance on the conditions applying to these exemptions you should refer to the appropriate Schedule E guidance shown in the table.
| Benefits exempt from Schedule E income tax and Class 1A NICs | Tax legislation | Relevant Guidance |
| Accommodation, supplies and services provided and used on the employer’s premises | Section 155(ZA)
ICTA 1988 | SE21601
SE21602 |
| Assets provided for business use away from the normal workplace and no significant private use allowed | Section 155(ZA)
ICTA 1988 | SE21602 onwards
|
| Bicycles | Section 197AC
ICTA 1988 | SE21664 |
| Car, motor cycle and bicycle parking facilities at or near the place of work | Section 155(1A)
ICTA 1988 | SE21685 |
| Computers (limited exemption) | Section 45
Finance Act 1999 | SE21697 |
| Cycles and cyclists’ breakfasts | Section 197AC ICTA 1988 | SE21664 |
| Entertainment provided by third parties | Section 155(7)
ICTA 1988 | SE21835 |
| Equipment or services provided to employees with a disability | Section 15ZB ICTA 1988 | SE21846 |
| Heavier Commercial Vehicles | Section 159AC
ICTA 1988 | SE22300 onwards |
| Leave travel facilities of members of the armed forces | Section 197
ICTA 1988 | SE21733 |
| Meals in a canteen provided for employers’ staff generally | Section 155(5)
ICTA 1988 | SE21670 |
| Medical treatment necessary when employee falls ill on duties abroad | Section 155(6)
ICTA 1988 | SE21766 |
| Pool cars | Section 159
ICTA 1988 | SE23800 |
| Provision of a benefit to be given on death or retirement | Section 155(4)
ICTA 1988 | SE21800 |
| Reimbursed expenses of a provided car | Section 157(3)
ICTA 1988 | SE23020 |
| Security assets and services where there is a special threat | Sections 50 to 52
Finance Act 1998 | SE21810 |
| Sick pay schemes: employer’s contribution | Section 154(2) | SE21830 |
| Sports facilities | Section 197G
ICTA 1988 | SE22850 |
| Structural alterations to provided living accommodation | Section 155(3)
ICTA 1988 | SE21611 |
| Works buses and subsidies to public bus services including use of works bus at lunchtimes | Section 197AA and
Section 197AB ICTA 1988 | SE21850
SE21855 |
