Class 1A National Insurance contributions: Exceptions from Class 1A NICs: Benefits covered by Extra Statutory Concessions: Extra Statutory Concession A56 (benefits in kind: the tax treatment of accommodation in Scotland provided for employees)
Section 10(9) SSCBA 1992 and regulation 40(7)(f) SS(C)R 2001
NIM14300 explains that where the conditions for granting an Extra Statutory Concession (ESC) are satisfied for tax purposes, we accept that no Class 1A NICs are payable. Regulation 40(7)(f) of the SS(C)R 2001, provides that no Class 1A NICs are payable if ESC A56 applies. ESC A56 applies only to living accommodation provided to employees living in Scotland. The employer providing the living accommodation does not have to be resident in Scotland.
For guidance about this concession see SE11433 and SE 11434.