How do I know if a benefit or expense subjects an employer to a Class 1A NIC liability or not?

Summary

This article gives gives an overview of which benefits are, and which benefits are not, subject to Class 1A National Insurance contributions.

Answer

The following benefits are always subject to Class 1A National Insurance contributions:

  • Accommodation
  • Beneficial Loans
  • Company Carsa
  • Company Car Fuel
  • Company Vans
  • Company Van Fuel
  • Gift Of Assets
  • Qualifying Relocation

Use Of Assets

The following benefits are never subject to Class 1A National Insurance contributions:

  • Authorised Mileage
  • Beneficial Loan Write-Offs
  • Company Car Mileage
  • Directors’ Taxes
  • Cash Long Service Awards
  • NIC Paid on Behalf of Employee
  • Notional Payments

Termination Payments

All other benefits and expenses you can enter in Sage 50 P11D, may or may not be subject to a Class 1A NIC liability depending on the circumstances and current legislation. For further information about this, please refer to the following:

  • Your tax advisor
  • The HM Revenue & Customs’ help line

HM Revenue & Customs publications such as booklet CWG5 Class 1A National Insurance contributions on benefits in kind, and booklet CA33 Class 1A National Insurance contributions on Car and Fuel Benefits.

We cannot advise on the tax treatment of benefits, however when you have decided the Class 1A NIC treatment of a benefit or expense, Sage 50 P11D ensures its correct tax treatment and reporting on form P11D(b).

For further advice or technical queries

Please contact us on:

01603 516350

enquiry@mintmis.com

www.mintMIS.com

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