NIM16003 - Class 1A NICs: Special Class 1A NICs cases: Cars provided for private use: Vehicles for which a car benefit charge under Section 157 ICTA 1988 does not apply

From 6 April 2000, where a car benefit charge under section 157 ICTA 1988 does not apply, for example because the vehicle is not within the definition of a car for tax purposes, a liability for Class 1A NICs will still arise if the vehicle is otherwise chargeable to Schedule E income tax under an alternative charging section.

The amount of Class 1A NICs due in these cases will be calculated on the cash equivalent of the benefit determined for tax purposes under the charging section applied, for example:

• Section 159AA – vans available for private use
• Section 154 – benefits in kind.

Guidance on vehicles which are not defined as cars is available at SE23020.

Guidance on the Class 1A NICs position for cars provided before 6 April 2000 which are not subject to a car benefit charge under section 157 ICTA 1988 is available at NIM17500.