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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 mil

NIM17521 explains that for the period 6 April 1991 to 5 April 2000 both a Class 1NICs and a Class 1A NICs liability could arise on the provision of free private fuel for use in a car which attracts a car benefit charge under section 158 of ICTA 1988.

NIM17521 also explains that 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 mileage rate.

Where the fuel is provided by means of a mileage rate, Class 1 NICs should be collected in the normal way and the Class 1A NICs liability ignored, see NIM05701