PART 3: NATIONAL INSURANCE
emergency measures introduced in March to June 2020 the Government confirmed that they would move quickly to even-up the contribution rates and benefit access for all contributors.
COMPANY CARS, VANS AND FUEL Class 1A National Insurance Contributions are payable by the employer, there is no employee liability, on the benefit received by an employee for the private use of, and the provision of fuel for private use in, a company provided car. Contributions are due on the value of the benefit of: • cars made available to most directors and employees (prior to April 2016 it was only employees with £8,500 pay and benefits p.a.), members of the employees families, dependants, servants and their guests, even if they do not avail themselves of the private use • fuel provided for private use • vans and private fuel, where the van is made available for private us. Class 1A is not charged on: • privately owned cars, and fuel made available for use in privately owned cars • company cars used exclusively for business • pooled cars • fuel provided for company cars solely for business use or where the proportion of any fuel used privately is fully made good by the employee. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Assessment of liability • Car - the charge is based upon the CO2 emissions and the list price of the car in question, minus allowable capital contributions and contributions for private use. For five years from 6th April 2010 no charge arose on electric cars. Where fuel is provided for private use and is not fully reimbursed, the fuel scale charge is calculated by applying the same percentage as for calculating the car benefit to the fixed charge of £24,600 (£24,500 2020/21, £24,100 2019/20, £23,400 2018/19, £22,600 2017/18, £22,200 2016/17, £22,100 2015/16, £21,700 2014/15, £21,100 2013/14, £20,200 2012/13, £18,800 2010/2012, £16,900 2009/10 and £14,400 pre-6.4.2008). • Vans - a fixed scale rate for unlimited private use of £3,500 (£3,490 2020/21, £3,430 2019/20, £3,350 2018/19, £3,230 2017/18, £3,170 2016/17, £3,150 2015/16, £3,090 2014/15 and £3,000 prior to this) is due plus a fuel charge for the provision of free private fuel of £669 (£666 2020/21, £655 2019/20, £633 2018/19, £610 2017/18, £598 2016/17, £594 2015/16, £581 2014/15, £564 2013/14 and £550 pre 2013). Historical Note Prior to 6th April 2002 the car benefit was determined by: • the price of the car immediately prior to registration, plus • the price of certain accessories provided either at registration or later, including fitting costs. No printing, copying or reproduction permitted. The price of the car was inclusive of custom duty, VAT and car tax, and it did not include vehicle excise duty.
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