NIM16381 – Class 1A NICs: Special Class 1A NICs cases: Vans and van fuel: General

As with most other taxable benefits, a Class 1A NICs liability will arise on the benefit of a provided van, if the van is:

• made available to:
• • a director or
  • an employee earning at the rate of £8500 or more a year including taxable expenses and taxable benefits
• made available by reason of the director or employee’s employment
• made available for the private use of either the director or employee or members of their family or household and
• chargeable to income tax under Schedule E.

Where the benefit of a van provided for private use attracts a van charge under the special rules of section 159AA ICTA 1988, Class 1A NICs are payable on whatever is the cash equivalent of providing the van calculated in accordance with section 159AA and schedule 6A ICTA 1988.

Definitions used in relation to vans, including those used to define a van and a heavier commercial vehicle, are the same for both tax and Class 1A NICs. These definitions are provided in the Schedule E Manual.

For guidance on the NICs liability of fuel provided for use in a van see NIM16385 (provided vans) and NIM16387 (privately owned vans).