NIM14110 - Class 1A National Insurance contributions: Exemptions from Class 1A NICs: Benefits exempt from income tax: Table of benefits exempt from income tax and Class 1A NICs
The table below lists those benefits exempt from income tax by specific sections of ITEPA 2003. NIM14100 explains why Class 1A NICs are not due when benefits are exempt from income tax.
For guidance on the conditions applying to these exemptions you should refer to the appropriate EIM reference shown in the table.
| Benefits exempt from income tax under ITEPA 2003 and Class 1A NICs | Income tax legislation from 6 April 2003 | Manual reference EIM para |
|---|---|---|
| Accommodation, supplies and services provided and used on the employer’s premises | Section 316 ITEPA 2003 | 21610 and 21611 |
| Apprenticeship bursaries paid to persons leaving local authority care | Section 254A ITEPA 2003 | - |
| Assets provided for business use away from the normal workplace - no significant private use allowed | Section 316 ITEPA 2003 | 21611 onwards |
| Cycles and safety equipment | Section 244 ITEPA 2003; SI 2002 No. 205 & SI 2003 No. 1434; | 21664 |
| Cyclists free meals and refreshments on cycle to work days | Sections 210 & 244 ITEPA 2003; SI 2002 No. 205 & SI 2003 No 1434; | 21664 |
| Car available to more than one member of family or household employed by same employer | Section 169 ITEPA 2003 | 23070 |
| Car, motor cycle and bicycle parking facilities at or near the place of work | Section 237 ITEPA 2003 | 21685 |
| Childcare – provision of workplace nurseries | Sections 318 to 318D ITEPA 2003 | 21900 onwards |
| Childcare – other than the provision of workplace nurseries & vouchers | Sections 318 & 318A to 318D ITEPA 2003 | 21902 |
| Computers (limited exemption) (abolished with effect from 6/4/06) | Section 320 ITEPA 2003 | 21699 to 21703 |
| Council Tax – for certain living accommodation | Section 314 ITEPA 2003 | 11332 |
| Counselling | Section 310 ITEPA 2003 | 13745 |
| Cycles and cyclists’ breakfasts | Section 244 ITEPA 2003; SI 2002 No 205; SI 2003 No 1434 | 21664 |
| Disabled employees – transport between work and home | Section 246 ITEPA 2003 | 23601 |
| Disabled employees – provision of a car | Section 247 ITEPA 2003 | 23600 |
| Emergency vehicles | Section 248A ITEPA 2003 | 23047 and 23048 |
| Entertainment provided by third parties | Sections 265, 266(1) & 267(1) ITEPA 2003 | 21835 |
| Equipment or services provided to employees with a disability | Sections 210 & 316 ITEPA 2003; SI 2002 No 1596 | 21846 |
| Eye tests and corrective appliances | Section 320A ITEPA 2003 | 21765 |
| Gifts from third parties | Section 324 ITEPA 2003 | 21715 |
| Health and employment insurance payments | Section 325A ITEPA 2003 | - |
| Heavier Goods Vehicles – Modest private use | Section 238 ITEPA 2003 | 22990 |
| Homeworker’s additional household expenses | 316A ITEPA 2003 | 32825 |
| Incidental overnight expenses and benefits | Sections 240 & 241 ITEPA 2003 | 2710 |
| Individual learning accounts - contributions | N/A | N/A |
| Late night transport, for example taxis | Section 248 ITEPA 2003 | 10210 |
| Leave travel facilities of members of the armed forces | Section 296 ITEPA 2003 | 21733 |
| Living accommodation – certain expenses | Section 315 ITEPA 2003 | 21720 |
| Living accommodation – repairs and alterations | Section 313 ITEPA 2003 | 21620 |
| Long service awards | Section 323 ITEPA 2003 | 21750 |
| Meals in a canteen provided for employers’ staff generally | Section 317 ITEPA 2003 | 21670 |
| Medical treatment necessary when employee falls ill on duties abroad | Section 325 ITEPA 2003 | 21766 |
| Mobile telephones | Section 319 ITEPA 2003 | 21780 |
| Parties and functions | Section 264 ITEPA 2003 | 21690 |
| Pool cars | Section 167 ITEPA 2003 | 23800 |
| Pool vans | Section 168 ITEPA 2003 | - |
| Provision of a benefit to be given on death or retirement | Section 307 ITEPA 2003 | 21800 |
| Recreational & sporting benefits | Section 261 to 263 ITEPA 2003 | 21825 |
| Redundancy payments | Section 309 ITEPA 2003 | 13760 |
| Reimbursed expenses of a provided car | Section 239(1) ITEPA 2003 | 23005 |
| Reimbursed expenses of a provided van | Section 239(1) ITEPA 2003 | 22710 |
| Removal benefits and expenses | Sections 271 to 289 ITEPA 2003 | 03100 to 03139 |
| Retraining courses | Sections 311 & 312 ITEPA 2003 | 05005 to 05040 |
| Security assets and services where there is a special threat | Section 377 ITEPA 2003 | 21810 |
| Sick pay schemes: employer’s contribution | Section 221 ITEPA 2003 | 21820 |
| Structural alterations to provided living accommodation | Section 313 ITEPA 2003 | 21620 |
| Suggestion awards | Sections 321 to 322 ITEPA 2003 | 06600 onwards |
| Training – work related | Sections 250 to 254 ITEPA 2003 | 01200 onwards |
| Van available to more than one member of family or household employed by same employer | Section 169A ITEPA 2003 | 22760 |
| Works buses and subsidies to public bus services including use of works bus at lunchtimes | Sections 242 & 243 ITEPA 2003 | 21850 to 21855 |