Class 1: vouchers - non-cash vouchers - exemptions - provided by third party other than employer
Section 10ZB Social Security Contributions & Benefits Act 1992
Regulation 25 and paragraph 8 of Part 5 of Schedule 3 Social Security (Contributions) Regulations 2001
NIM02416 shows the types of non-cash voucher (see NIM02413) that are specifically disregarded in calculating an employee’s earnings for Class 1 NICs purposes. Since 6th April 2000, where from that date:
- a third party provides an employee, irrespective of the level of their earnings, with a non-cash voucher, and
- that provision has not been arranged or facilitated by the employer,
- the non-cash voucher is disregarded for Class 1 NICs purposes; but
- a Class 1A NICs liability will arise on the cost of the provision of the non-cash voucher. See NIM16357 for guidance on the Class 1A NICs position.
The following table summarises the position of third-party provision from April 1999.
|Tax year||Class 1 liability?||Class 1A liability?||Liable party?||Further information|
|2000/01||No||Yes||Employer, but the third party may choose to pay if it wishes||NIM16350 - NIM16366|
|2001/02 onwards||No||Yes||Third party||NIM16350 - NIM16366|