NIM16003 | Class 1A National Insurance contributions: Special Class 1A NICs cases: Cars provided for private use: Vehicles for which a car benefit charge under section 120 of ITEPA 2003 1988 does not apply

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

Where a car benefit charge under section 120 of ITEPA 2003 does not apply, for example, because the vehicle is not within the definition of a car for tax purposes, a liability for Class 1A NICs still arises if the vehicle is otherwise chargeable to income tax under ITEPA 2003 under an alternative charging section.

The amount of Class 1A NICs due in these cases is calculated on the cash equivalent of the benefit determined for tax purposes under the charging section applied, for example, section 203 of ITEPA 2003.

Guidance on vehicles which are not defined as cars is available at EIM23020.