Nim15030 - class 1a national insurance contributions: calculating class 1a nics: calculating the total amount of class 1a nics due in a tax year: example - hmrc internal manual

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Nim15030 - class 1a national insurance contributions: calculating class 1a nics: calculating the total amount of class 1a nics due in a tax year: example - hmrc internal manual"


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NIM15030 - CLASS 1A NATIONAL INSURANCE CONTRIBUTIONS: CALCULATING CLASS 1A NICS: CALCULATING THE TOTAL AMOUNT OF CLASS 1A NICS DUE IN A TAX YEAR: EXAMPLE NIM15010 explains how to calculate


the amount of Class 1A NICs due. The example below illustrates how employers can calculate the liability. In the 2025 to 2026 tax year, an employer provides * 10 employees with cars


available for private use, the cash equivalent of each is £6,000 * 250 employees with private medical care, the cash equivalent of each is £300 * 25 employees with vans available for private


use, the cash equivalent of each is £500 * 3 employees with interest free loans, the cash equivalent of each is £3,000. The employer reports each benefit on the individual employees’ P11Ds.


The Class 1A NICs percentage rate for the 2025 to 2026 tax year is 15%. The Class 1A NICs payable by the employer are calculated as follows   NUMBER OF EMPLOYEES CASH EQUIVALENT OF EACH


BENEFIT (£) TOTAL CASH EQUIVALENT FOR ALL EMPLOYEES (£) 10 6000 60000 250 300 75000 25 500 12500 3 3000 9000 - TOTAL 156,500 CLASS 1A NICS DUE 15% OF £156,500 £23,475 Previous page Next page


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