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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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Class 1 NICs: expenses and allowances: car parking fines

Section 3(1)(a) and 6(1) of the Social Security Contributions and Benefits Act 1992

Any payment which an employer makes towards the cost of parking fines incurred by an employee, whether

  • making a payment direct to the employee, or
  • paying the fine on the employee’s behalf,

must be included in gross pay when assessing Class 1 NICs purposes. The date the payment is made is the date the earnings were paid.

When making such payments the employer is paying a debt incurred by the employee. This is sometimes referred to as pecuniary liability.”