NIM14110 - Class 1A National Insurance contributions: Exemptions from Class 1A NICs: Benefits exempt from income tax: Table of benefits exempt from income tax and Class 1A NICs

The table below lists those benefits exempt from income tax by specific sections of ITEPA 2003 (before 6 April 2003 – sections of ICTA 1988). NIM14100 explains why Class 1A NICs are not due when benefits are exempt from income tax.

For guidance on the conditions applying to these exemptions you should refer to the appropriate EIM (before 6 April 2003 – SE Manual) reference shown in the table.

Benefits exempt from income tax under ITEPA 2003 and Class 1A NICs	Income tax legislation ref before 6 April 2003	Income tax legislation from 6 April 2003	Manual reference
	Income tax legislation ref before 6 April 2003	Income tax legislation from 6 April 2003	SE para	EIM para
Accommodation, supplies and services provided and used on the employer’s premises	Section 155ZA ICTA 1988	Section 316 ITEPA 2003	21601 21602	21610 21611
Assets provided for business use away from the normal workplace - no significant private use allowed	Section 155ZA ICTA 1988	Section 316 ITEPA 2003	21602 onwards	21611 onwards
Cycles and safety equipment	Section 197AC ICTA 1988; SI 2002 No. 205	Section 244 ITEPA 2003; SI 2002 No. 205 & SI 2003 No. 1434;	21664	21664
Cyclists free meals and refreshments on cycle to work days	Sections 155ZB & 197AC ICTA 1988; Reg 3 of SI 2002 No. 205	Sections 210 & 244 ITEPA 2003; SI 2002 No. 205 & SI 2003 No 1434;	21664	21664
Car available to more than one member of family or household employed by same employer	ESC A71	Section 169 ITEPA 2003	23070	23070
Car, motor cycle and bicycle parking facilities at or near the place of work	Section 155(1A) ICTA 1988	Section 237 ITEPA 2003	21685	21685
Childcare – provision of workplace nurseries	Section 155A ICTA 1988	Sections 318 to 318D ITEPA 2003	21900 onwards	21900 onwards
Childcare – other than the provision of workplace nurseries & vouchers		Sections 318 & 318A to 318D ITEPA 2003		21902
Computers (limited exemption) (abolished with effect from 6/4/06)	Section 156A ICTA 1988	Section 320 ITEPA 2003	21697	21699 to 21703
Council Tax – for certain living accommodation	Section 145(4) ICTA 1988	Section 314 ITEPA 2003	11332	11332
Counselling	Sections 589A & 589B ICTA 1988	Section 310 ITEPA 2003	13745	13745
Cycles and cyclists’ breakfasts	Section 197AC ICTA 1988; SI 2002 No 205	Section 244 ITEPA 2003; SI 2002 No 205; SI 2003 No 1434	21664	21664
Disabled employees – transport between work and home	ESC A59	Section 246 ITEPA 2003	23601	23601
Disabled employees – provision of a car	ESC A59	Section 247 ITEPA 2003	23600	23600
Emergency vehicles	N/A	Section 248A ITEPA 2003	N/A	23047 23048
Entertainment provided by third parties	Section 155(7) ICTA 1988	Sections 265, 266(1) & 267(1) ITEPA 2003	21835	21835
Equipment or services provided to employees with a disability	Section 155ZB ICTA 1988; SI 2002 No. 1596	Sections 210 & 316 ITEPA 2003; SI 2002 No 1596	21846	21846
Eye tests and corrective appliances	N/A	Section 320A ITEPA 2003	21765	21765
Gifts from third parties	ESC A70	Section 324 ITEPA 2003	21715	21715
Health and employment insurance payments	N/A	Section 325A ITEPA 2003
Heavier Goods Vehicles – Modest private use	Section 159AC	Section 238 ITEPA 2003	22300 onwards	22990
Homeworker’s additional household expenses	N/A	316A ITEPA 2003	32760	32825
Incidental overnight expenses and benefits	Section 200A ICTA 1988	Sections 240 & 241 ITEPA 2003	02710	02710
Individual learning accounts - contributions	Section 200E ICTA 1988	N/A	01310	N/A
Late night transport, for example taxis	ESC A66	Section 248 ITEPA 2003	10200	10210
Leave travel facilities of members of the armed forces	Section 197 ICTA 1988	Section 296 ITEPA 2003	21733	21733
Living accommodation – certain expenses	Section 163 ICTA 1988	Section 315 ITEPA 2003	21720	21720
Living accommodation – repairs and alterations	Section 155(3) ICTA 1988	Section 313 ITEPA 2003	21611	21620
Long service awards	ESC A22	Section 323 ITEPA 2003	21750	21750
Meals in a canteen provided for employers’ staff generally	Section 155(5) ICTA 1988	Section 317 ITEPA 2003	21670	21670
Medical treatment necessary when employee falls ill on duties abroad	Section 155(6) ICTA 1988	Section 325 ITEPA 2003	21766	21766
Mobile telephones	Section 155AA ICTA 1988	Section 319 ITEPA 2003	21780	21780
Parties and functions	ESC A70B	Section 264 ITEPA 2003	21690	21690
Pool cars	Section 159 ICTA 1988	Section 167 ITEPA 2003	23800	23800
Pool vans	Section 159AB ICTA 1988	Section 168 ITEPA 2003
Provision of a benefit to be given on death or retirement	Section 155(4) ICTA 1988	Section 307 ITEPA 2003	21800	21800
Recreational & sporting benefits	Section 197G ICTA 1988	Section 261 to 263 ITEPA 2003	22850	21825
Redundancy payments	Sections 579 & 580 ICTA 1988	Section 309 ITEPA 2003	13760	13760
Reimbursed expenses of a provided car	Section 157(3) ICTA 1988	Section 239(1) ITEPA 2003	23005	23005
Reimbursed expenses of a provided van	Section 159AA(3) ICTA 1988	Section 239(1) ITEPA 2003	22130	22710
Removal benefits and expenses	Schedule 11A ICTA 1988	Sections 271 to 289 ITEPA 2003	03100 to 03140	03100 to 03139
Retraining courses	Section 588 & 589	Sections 311 & 312 ITEPA 2003	05000 to 05020	05005 to 05040
Security assets and services where there is a special threat	Sections 50 to 52 Finance Act 1989	Section 377 ITEPA 2003	21810	21810
Sick pay schemes: employer’s contribution	Section 154(2) ICTA 1988	Section 221 ITEPA 2003	21830	21820
Structural alterations to provided living accommodation	Section 155(3) ICTA 1988	Section 313 ITEPA 2003	21611	21620
Suggestion awards	ESC A57	Sections 321 to 322 ITEPA 2003	06600 onwards	06600 onwards
Training – work related	Sections 200B, 200C & 200D ICTA 1988	Sections 250 to 254 ITEPA 2003	01200 onwards	01200 onwards
Van available to more than one member of family or household employed by same employer	N/A	Section 169A ITEPA 2003	N/A	22760
Works buses and subsidies to public bus services including use of works bus at lunchtimes	Sections 197AA & 197AB ICTA 1988	Sections 242 & 243 ITEPA 2003	21850 21855	21850 21855

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