Where a van was provided to an employee chargeable to income tax
under section 154 of ITEPA 2003 (before 6 April 2003 –
section 159AA of ICTA 1988), providing all the conditions in
section 10(1) of the SSCBA 1992 are satisfied (see
NIM13021), Class 1A NICs are due on the
cash equivalent of the van. The cash equivalent of the van is the
amount of general earnings chargeable to income tax under ITEPA
2003 (before 6 April 2003 – the amount of emoluments
chargeable to income tax under Schedule E).
There is no additional tax charge for any fuel provided for
use in a van chargeable to income tax under the van benefit rules.
This applies whether or not the fuel is used for private mileage.
Therefore, no Class 1A NICs liability can arise on the provision of
fuel.
A liability for Class 1 NICs arises on any payment made to or
for the employee’s benefit for fuel which is used in a
provided van if
and
Any payments in respect of fuel made by an employer, which
attracts a Class 1 NICs liability, are added to any other earnings
received by the employee in the earnings period in which the fuel
payment is made and Class 1 NICs deducted.
Where an employee uses the litany in advance of purchasing
fuel for use in an employer provided van, no Class 1 NICs or Class
1A NICs will be due. For guidance about the litany see
NIM02191.
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
