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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
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Class 1A National Insurance contributions: Special Class 1A NICs cases: Cars provided for private use: Cars provided to disabled drivers: Cars provided for home to work travel only

Section 10(9) of the SSCBA 1992 and regulation 38 of the SS(C)R 2001

Exception from Class 1A NICsFor Class 1A NIC purposes, where

  • a car is made available to a disabled person; and
  • the car is made available by reason of the person’s employment; and
  • because of their disability the car is made available to assist the employee in travelling between their home and place of employment; and
  • the terms, on which the car is made available to the employee, prohibit any private use other than by the disabled employee in travelling between their home and place of employment; and
  • no prohibited private use of the car is madeno Class 1A NICs liability arises. To satisfy this exemption all of the above conditions must be satisfied.

For the definition of disabled driver see NIM16025.

Income taxThe NICs rules differ from the tax treatment of cars provided to disabled employees. The tax rules are explained at EIM23601 (before 6 April 2003 – SE23600).