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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
, see all updates

Class 1A National Insurance contributions: Special Class 1A NICs cases: Child care benefits from 6 April 2005: Non-cash vouchers exchangeable for childcare benefits

In the context of Class 1A NICs liability on the provision by the employer, or a third party, of non-cash vouchers exchangeable for childcare benefits, there is no Class 1A exemption from 6 April 2005.

From 6 April 2005 Class 1A NICs liability depends on the general principles described at NIM13002.

Liability for Class 1A NICs depends on the treatment of the vouchers for tax and Class 1 NICs purposes. Vouchers exempt from tax are exempt from Class 1A NICs because there are no general earnings chargeable to income tax under ITEPA 2003.

Where vouchers are chargeable to tax and liable for Class 1 NICs, a liability for Class 1A NICs cannot arise because section 10(1)(c) of the SSCBA 1992 is not satisfied.

For more information about the tax position relating to non-cash vouchers from 6 April 2005 see EIM16057

For more information about the Class 1 NICs position relating to non-cash vouchers from 6 April 2005 see NIM02445.