NIM16050 - Class 1A National Insurance contributions: Special Class 1A NICs cases: Cars provided for private use: Leased cars and leasing arrangements

Liability for NICs on leased cars or cars made available under leasing arrangements will depend upon who is actually leasing the car. If a car is leased by the

• employer or someone on behalf of the employer, and the employer makes the car available to the employee, a Class 1A NICs liability will arise providing the benefit from the car is taxable as general earnings under ITEPA 2003
• employee through independent arrangements, so that the employee has not obtained the car on those terms and conditions by reason of his employment, see EIM23250, there is no Class 1A NICs liability. There may, however, be a Class 1 NICs liability if the employer pays the leasing costs for the employee or reimburses the employee the leasing costs, see NIM02270.

For guidance about Employee Car Ownership Schemes or Plans see NIM05770 and EIM31500.