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HMRC internal manual

National Insurance Manual

Class 1A National Insurance contributions: Liability for Class 1A NICs: Employer is self-employed or trading as a partnership

There are no Class 1A NICs payable on benefits provided to someone who is self-employed or who is trading as a partnership. For example, a partnership may own a van which both partners may use for private purposes, but no Class 1A NICs are due.

If, however, a self-employed earner or partnership provides benefits to an employee and the conditions outlined at NIM13021 are fully satisfied, Class 1A NICs are due in the normal way. For example, a partnership may own a company van and allow one of its employees to use the van privately.