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HMRC internal manual

National Insurance Manual

Class 1A National Insurance contributions: Liability for Class 1A NICs before 6 April 2000: Special arrangements for fuel provided for private use in a provided car: Dual liability for Class 1 and Class 1A NICs: Fuel provided by means of a rou

NIM17521 explains that for the period 6 April 1991 to 5 April 2000

  • both a Class 1 and a Class 1A NICs liability could arise on the provision of free private fuel for use in a car that attracts a car benefit charge under section 157 of ICTA 1988, and
  • although this dual liability existed, an administrative decision not to collect Class 1 NICs in favour of the Class 1A NICs liability applies.This administrative decision does not apply in cases where the fuel was provided by means of a round sum allowance (RSA).

Where the fuel is provided by means of a RSA, any Class 1 NICs liability arising should be collected in the normal way and the Class 1A NICs liability on the fuel ignored, see NIM06052.