NIM14510 - Class 1A National Insurance contributions: Exemptions from Class 1A NICs liability: Benefits and payments exempt from Class 1A NICs by regulation: Table of benefits and payments exempt from Class 1A NICs liability
Section 10(9)(a) SSCBA 1992 and regulation 40 SS(C)R 2001
NIM14501 explains that some benefits and payments chargeable to income tax are specifically excluded from Class 1A NICs liability by regulation 40 of the SS(C)R 2001. The table below lists those benefits and payments. Before deciding whether a payment is excluded from Class 1A NICs liability you should ensure you consult the NIM guidance about the exclusion.
| Benefit or payment | Legislation – SS(C)R 2001 | Guidance |
|---|---|---|
| Cars provided to disabled employees – reduction of Class 1A NICs - Before 6 April 2004 | Reg 37 | NIM16020 |
| Cars provided to disabled employees only for business and home to work travel | Reg 38 | NIM16022 |
| Contributions to, and benefits from registered pension schemes – From 6 April 2006 | Reg 40(2)(a) & para 2(a) Part 6 Schedule 3 | NIM02710 to NIM02717 |
| Employer’s pension contributions that attract migrant member relief and corresponding relief; and benefits which are referable to such contributions – From 6 April 2006 | Reg 40(2)(a) & para 3 Part 6 Schedule 3 | NIM02730 to NIM02732 |
| Relevant benefits from unapproved retirement benefits schemes and attributable to payments before 6 April 1998 | Reg 40(2)(a) & para 4 Part 6 Schedule 3 | NIM02161 |
| Benefits from unapproved retirement benefit schemes attributable to payments after 5 April 1998 which have previously been included in gross pay for Class 1 NICs purposes | Reg 40(2)(a) & para 5 Part 6 Schedule 3 | NIM02161 |
| Payments to retirement benefits schemes established in good faith to provide relevant benefits – before 6 April 2006 | Reg 40(2)(a) & para 6 Part 6 Schedule 3 | NIM02161 |
| Payments to a pension scheme afforded relief from taxation under double taxation agreements | Reg 40(2)(a) & para 7 Part 6 Schedule 3 | NIM02735 |
| Payments from employer-financed retirement benefits schemes and employer financed pension only schemes – From 6 April 2006 | Reg 40(2)(a) & para 10 Part 6 Schedule 3 | NIM02755 \nNIM02765 \nNIM02773 |
| Employer’s contributions to a superannuation fund to which section 615(3) of ICTA 1988 applies – From 6 April 2006 | Reg 40(2)(a) & para 11 Part 6 Schedule 3 | NIM02740 to NIM02742 |
| Payments made by employers to earners in full-time attendance at universities, technical college or similar educational establishments | Reg 40(2)(ab) & para 12 Part 7 Schedule 3 | NIM02402 |
| Travel and foreign travel expenses of overseas employees - payments deductible from emoluments chargeable to income tax under section 193(3), 193(4) or 193(6) or 194(1) of ICTA 1988 | Reg 40(2)(b) & para 4 Part 8 Schedule 3 | NIM06400 |
| Travel expenses of employees not domiciled in the UK – Payments deductible from emoluments under section 195(7) of ICTA 1988 | Reg 40(2)(b) & para 5 Part 8 Schedule 3 | NIM06410 |
| Commonwealth War Graves Commission and British Council – Extra cost of living allowance | Reg 40(2)(b) & para 13 Part 8 Schedule 3 | NIM06000 |
| Shares which are not readily convertible assets which are part of the company’s or associated company’s share capital acquired before 1 September 2003 | Reg 40(2)(c) & para 2 Part 9 Schedule 3 | NIM06800 |
| Share options or the shares which can be acquired are not readily convertible assets acquired before 1 September 2003 | Reg 40(2)(c) & para 3 Part 9 Schedule 3 | NIM06800 |
| Enterprise management incentives – Long share options: Revoked with effect from 1 September 2003 | Reg 40(2)(c) & para 4 Part 9 Schedule 3 | NIM06800 |
| Priority share allocations | Reg 40(2)(c) & para 5 Part 9 Schedule 3 | NIM06800 |
| Partnership share agreements | Reg 40(2)(c) & para 6 Part 9 Schedule 3 | NIM06800 |
| Shares awarded under an employee share ownership plan/share incentive plan | Reg 40(2)(c) & para 7 Part 9 Schedule 3 | NIM06800 |
| Securities and interests in securities which are not readily convertible assets – from 1 September 2003 | Reg 40(2)(c) & para 7A Part 9 Schedule 3 | NIM06800 |
| Payments in respect of gratuities or offerings | Reg 40(2)(d) & para 5 Part 10 Schedule 3 | NIM02905 |
| VAT on the supply of goods and services | Reg 40(2)(d) & para 9 Part 10 Schedule 3 | NIM02405 |
| Fees and subscriptions to professional bodies, learned societies, etc | Reg 40(2)(d) & para 11 Part 10 Schedule 3 | NIM05695 |
| Holiday pay (from a fund) | Reg 40(2)(d) & para 12 Part 10 Schedule 3 | NIM02200 |
| Payments to ministers of religion (not forming part of the stipend or salary) | Reg 40(2)(d) & para 13 Part 10 Schedule 3 | NIM02260 |
| Rewards for assistance with lost or stolen cards - From 26 July 2001 | Reg 40(2)(d) & para 15 Part 10 Schedule 3 | NIM02108 |
| Qualifying travel expenses which are not payments in kind | Reg 40(3) & para 8 Part 8 Schedule 3 | NIM06240 |
| Specific and distinct payments of, or towards, expenses incurred carrying out employment which are not payments in kind | Reg 40(3) & para 9 Part 8 Schedule 3 | NIM05020 |
| Removal expenses or benefits where employment at the place of employment started before 6 April 1998 | Reg 40(4)(a) & para 2(2)(b) Part 8 Schedule 3 | NIM06110 |
| Removal expenses not within section 271 ITEPA 2003 (before 6 April 2003 - Schedule 11A of ICTA 1988) | Reg 40(4)(b) | NIM06120 |
| Employer provided childcare – before 6 April 2005 | Regulation 40(5) | NIM16100 |
| Benefits pursuant to a retirement benefits scheme within either section 596(1) or 596(2) ICTA 1988 – Before 1 September 2003 | Reg 40(6)(a) | N/A |
| Benefits pursuant to a pilots’ benefit fund under section 607 of ICTA 1988 – Before 6 April 2006 | Reg 40(6)(b) | NIM02161 |
| Benefits pursuant to superannuation funds approved before 6 April 1980 or annuities or taxable pension income – Before 6 April 2006 | Reg 40(6)(c) | NIM02161 |
| Benefits pursuant to funded unapproved retirement benefits schemes – From 6 April 2003 but before 6 April 2006 | Reg 40(6A)(a) | NIM02162 |
| Benefits pursuant to funded unapproved retirement benefits schemes where section 390 of ITEPA 2003 applies (non-domiciled employees with foreign employer) – From 6 April 2003 but before 6 April 2006 | Reg 40(6A)(b) | NIM02161 |
| Meal vouchers – 15 pence per working day - Before 6 April 2013 | Reg 40(2)(za) & para 6A Part 5 Schedule 3 | NIM05685 \nNIM02437 |