NIM14322 | Class 1A National Insurance contributions: Exceptions from Class 1A NICs: Benefits covered by Extra Statutory Concessions: ESC A56 (benefits in kind: the tax treatment of accommodation in Scotland provided for employees)

Section 10(9) of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)

Regulation 40(7)(f) of the Social Security Contributions Regulations 2001 (SSCR 2001) (SI 2001 No 1004)

NIM14300 explains that where the conditions for granting an Extra Statutory Concession (ESC) are satisfied for tax purposes, we accept that no Class 1A NICs are payable. Regulation 40(7)(f) of the SS(C)R 2001, provides that no Class 1A NICs are payable if ESC A56 applies. ESC A56 applies only to living accommodation provided to employees living in Scotland. The employer providing the living accommodation does not have to be resident in Scotland.

For guidance about this concession see EIM11432.