NIM16179 - Class 1A NICs: Special Class 1A NICs cases: Fuel for use in a provided car – Payment of a round sum allowance
If an employer pays a round sum allowance in respect of fuel used in a provided car, the normal rules for assessing Class 1 NICs on round sum allowances apply, see NIM06160.
The following tables show the NICs position where a round sum allowance is paid in respect of fuel for use in a provided car.
| Employer pays a round sum allowance for: | NICs liability |
| Business mileage only and the rate is reasonable | No NICs liability |
| Business mileage only but the rate paid is excessive | Class 1 NICs due on the profit. No Class 1A NICs due whether or not a fuel scale charge arises under section 149 ITEPA 2003 |
| Non-business mileage | Class 1NICs due on full amount. No Class 1A NICs due whether or not fuel scale charge arises under section 149 ITEPA 2003 |
