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HMRC internal manual

National Insurance Manual

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 (before 6 April 2003 – sections of ICTA 1988). [

The table below lists those benefits exempt from income tax by specific sections of ITEPA 2003 (before 6 April 2003 – sections of ICTA 1988).](https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/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 (before 6 April 2003 – SE Manual) reference shown in the table.

The table below lists those benefits exempt from income tax by specific sections of ITEPA 2003 (before 6 April 2003 – sections of ICTA 1988). [

The table below lists those benefits exempt from income tax by specific sections of ITEPA 2003 (before 6 April 2003 – sections of ICTA 1988).](https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/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 (before 6 April 2003 – SE Manual) reference shown in the table. Income tax legislation ref before 6 April 2003 Income tax legislation from 6 April 2003 Manual reference    
           
  SE para EIM para      
  Accommodation, supplies and services provided and used on the employer’s premises Section 155ZA ICTA 1988 Section 316 ITEPA 2003 21601  
21602 21610        
21611          
  Assets provided for business use away from the normal workplace - no significant private use allowed Section 155ZA ICTA 1988 Section 316 ITEPA 2003 21602 onwards 21611 onwards
  Cycles and safety equipment Section 197AC ICTA 1988; SI 2002 No. 205 Section 244 ITEPA 2003; SI 2002 No. 205 & SI 2003 No. 1434; 21664 21664
  Cyclists free meals and refreshments on cycle to work days Sections 155ZB & 197AC ICTA 1988; Reg 3 of SI 2002 No. 205 Sections 210 & 244 ITEPA 2003; SI 2002 No. 205 & SI 2003 No 1434; 21664 21664
  Car available to more than one member of family or household employed by same employer ESC A71 Section 169 ITEPA 2003 23070 23070
  Car, motor cycle and bicycle parking facilities at or near the place of work Section 155(1A) ICTA 1988 Section 237 ITEPA 2003 21685 21685
  Childcare – provision of workplace nurseries Section 155A ICTA 1988 Sections 318 to 318D ITEPA 2003 21900 onwards 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 156A ICTA 1988 Section 320 ITEPA 2003 21697 21699 to 21703
  Council Tax – for certain living accommodation Section 145(4) ICTA 1988 Section 314 ITEPA 2003 11332 11332
  Counselling Sections 589A & 589B ICTA 1988 Section 310 ITEPA 2003 13745 13745
  Cycles and cyclists’ breakfasts Section 197AC ICTA 1988; SI 2002 No 205 Section 244 ITEPA 2003; SI 2002 No 205; SI 2003 No 1434 21664 21664
  Disabled employees – transport between work and home ESC A59 Section 246 ITEPA 2003 23601 23601
  Disabled employees – provision of a car ESC A59 Section 247 ITEPA 2003 23600 23600
  Emergency vehicles N/A Section 248A ITEPA 2003 N/A 23047
23048          
  Entertainment provided by third parties Section 155(7) ICTA 1988 Sections 265, 266(1) & 267(1) ITEPA 2003 21835 21835
  Equipment or services provided to employees with a disability Section 155ZB ICTA 1988; SI 2002 No. 1596 Sections 210 & 316 ITEPA 2003; SI 2002 No 1596 21846 21846
  Eye tests and corrective appliances N/A Section 320A ITEPA 2003 21765 21765
  Gifts from third parties ESC A70 Section 324 ITEPA 2003 21715 21715
  Health and employment insurance payments N/A Section 325A ITEPA 2003    
  Heavier Goods Vehicles – Modest private use Section 159AC Section 238 ITEPA 2003 22300 onwards 22990
  Homeworker’s additional household expenses N/A 316A ITEPA 2003 32760 32825
  Incidental overnight expenses and benefits Section 200A ICTA 1988 Sections 240 & 241 ITEPA 2003 2710 2710
  Individual learning accounts - contributions Section 200E ICTA 1988 N/A 1310 N/A
  Late night transport, for example taxis ESC A66 Section 248 ITEPA 2003 10200 10210
  Leave travel facilities of members of the armed forces Section 197 ICTA 1988 Section 296 ITEPA 2003 21733 21733
  Living accommodation – certain expenses Section 163 ICTA 1988 Section 315 ITEPA 2003 21720 21720
  Living accommodation – repairs and alterations Section 155(3) ICTA 1988 Section 313 ITEPA 2003 21611 21620
  Long service awards ESC A22 Section 323 ITEPA 2003 21750 21750
  Meals in a canteen provided for employers’ staff generally Section 155(5) ICTA 1988 Section 317 ITEPA 2003 21670 21670
  Medical treatment necessary when employee falls ill on duties abroad Section 155(6) ICTA 1988 Section 325 ITEPA 2003 21766 21766
  Mobile telephones Section 155AA ICTA 1988 Section 319 ITEPA 2003 21780 21780
  Parties and functions ESC A70B Section 264 ITEPA 2003 21690 21690
  Pool cars Section 159 ICTA 1988 Section 167 ITEPA 2003 23800 23800
  Pool vans Section 159AB ICTA 1988 Section 168 ITEPA 2003    
  Provision of a benefit to be given on death or retirement Section 155(4) ICTA 1988 Section 307 ITEPA 2003 21800 21800
  Recreational & sporting benefits Section 197G ICTA 1988 Section 261 to 263 ITEPA 2003 22850 21825
  Redundancy payments Sections 579 & 580 ICTA 1988 Section 309 ITEPA 2003 13760 13760
  Reimbursed expenses of a provided car Section 157(3) ICTA 1988 Section 239(1) ITEPA 2003 23005 23005
  Reimbursed expenses of a provided van Section 159AA(3) ICTA 1988 Section 239(1) ITEPA 2003 22130 22710
  Removal benefits and expenses Schedule 11A ICTA 1988 Sections 271 to 289 ITEPA 2003 03100 to 03140 03100 to 03139
  Retraining courses Section 588 & 589 Sections 311 & 312 ITEPA 2003 05000 to 05020 05005 to 05040
  Security assets and services where there is a special threat Sections 50 to 52 Finance Act 1989 Section 377 ITEPA 2003 21810 21810
  Sick pay schemes: employer’s contribution Section 154(2) ICTA 1988 Section 221 ITEPA 2003 21830 21820
  Structural alterations to provided living accommodation Section 155(3) ICTA 1988 Section 313 ITEPA 2003 21611 21620
  Suggestion awards ESC A57 Sections 321 to 322 ITEPA 2003 06600 onwards 06600 onwards
  Training – work related Sections 200B, 200C & 200D ICTA 1988 Sections 250 to 254 ITEPA 2003 01200 onwards 01200 onwards
  Van available to more than one member of family or household employed by same employer N/A Section 169A ITEPA 2003 N/A 22760
  Works buses and subsidies to public bus services including use of works bus at lunchtimes Sections 197AA & 197AB ICTA 1988 Sections 242 & 243 ITEPA 2003 21850  
21855 21850        
21855