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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
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Class 1A National Insurance contributions: Special Class 1A NICs cases: Cars provided for private use: Vehicles for which a car benefit charge under section 120 of ITEPA 2003 1988 does not apply

Where a car benefit charge under section 120 of ITEPA 2003 (before 6 April 2003 – section 157 of ICTA 1988) does not apply, for example because the vehicle is not within the definition of a car for tax purposes, a liability for Class 1A NICs still arises if the vehicle is otherwise chargeable to income tax under ITEPA 2003 (before 6 April 2003 – under Schedule E) under an alternative charging section.

The amount of Class 1A NICs due in these cases is calculated on the cash equivalent of the benefit determined for tax purposes under the charging section applied, for example, section 203 of ITEPA 2003 (before 6 April 2003 – section 154 of ICTA 1988).

Guidance on vehicles which are not defined as cars is available at EIM23020 (before 6 April 2003 - SE23020).

Guidance on the Class 1A NICs position for cars provided before 6 April 2000, which are not subject to a car benefit charge under section 157 ICTA 1988, is available at NIM17500.