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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

Notices of decision: Wording of decisions: National Insurance contributions liability decisions: Period covered by Class 1A National Insurance contributions liability decisions

The general principles about liability decisions explained in DANSP30700 apply to Class 1A National Insurance contributions (NIC) liability decisions.

Period covered by a decision

Class 1A NIC are due on benefits provided in a tax year. They are due to be paid in July following the end of the tax year in which the benefit was provided. Wherever possible, the decision should cover all tax years in which the benefit was provided and for which the Class 1A NIC liability is disputed. Where more than one tax year is covered and those tax years are consecutive, show the start of the first tax year and the last day of the last tax year covered.


R Ltd provides ten employees with company cars and fuel for those cars in the 2005/06, 2006/07 and 2007/08 tax years. Class 1A NIC have not been paid for any of these tax years because R Ltd asserts that the cars were only used for business travel. HMRC does not agree.

Wording of the decision

My decision is that:

R Ltd is liable to pay Class 1A contributions in respect of cars and car fuel made available to employees, listed in the attached schedule, for private use during the period 6 April 2005 to 5 April 2008.

The Class 1A contributions R Ltd is liable to pay in respect of those cars and car fuel are £2,529.67.

The amount R Ltd has paid in respect of the cars and fuel is £0.00.

If the decision maker considers that there are good reasons to separate the tax years or tax periods, the legislation does not prevent the issue of separate notices of decision.

See DANSP26700 about raising a charge on the Strategic Accounting Framework Environment (SAFE) system.