NIM16381 - Class 1A National Insurance contributions: Special Class 1A NICs cases: Vans: General
Section 10 of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)
As with most other taxable benefits, Class 1A NICs liability arises on the benefit of a provided van if all the conditions in NIM13021 are satisfied. One of the conditions is that there must be an amount of general earnings chargeable to income tax under ITEPA 2003.
Where the benefit of a provided van attracts a charge to income tax under the van benefit rules, section 154 of ITEPA 2003, Class 1A NICs are payable on the cash equivalent of the benefit of providing the van, that is, the amount of general earnings chargeable to income tax under ITEPA 2003. The cash equivalent of the benefit is calculated in accordance with section 155 of ITEPA 2003. For guidance on the income tax position see EIM22700 onwards.
Definitions used in relation to vans, including those used to define a van and a heavier commercial vehicle, are the same for both tax and Class 1A NICs. These definitions are provided in the Employment Income Manual.
Before 6 April 2000, Class 1A NICs liability could not arise on the provision of a van because it was restricted to car and car fuel benefits.
For guidance on the NICs liability of: