NIM16030 - Class 1A NICs: Special Class 1A cases: Cars provided for private use: Cars provided to family members

As with other benefits which attract a Class 1A NICs liability, the provision of a car for the private use of a director or employee’s family or household is treated in the same manner as it is for tax.

Where a tax liability arises on a car provided to a member of a director’s family or household an equivalent Class 1A NICs liability arises on the employer.

Detailed guidance on the tax treatment of cars provided to family members is provided at SE23061 and SE23070. That guidance applies equally to Class 1A NICs but see NIM16031 for the Class 1A NICs equivalent of ESC A71 (Company cars: Family members and shared use).