Who pays Class 1A National Insurance contributions?
Only employers normally pay Class 1A National Insurance contributions (currently 11.8% in 2002/03 and will be increased by 1% to 12.8% in 2003/04). From 6 April 1991, as an employer, you may be liable to pay Class 1A National Insurance contributions for the cars you provide to: directors employees who are paid at a rate of 8,500 a year or more, including taxable benefits and expenses payments. Normally, a Class 1A liability will arise where the benefit of the car is chargeable to income tax on the director or employee, and the employment for which the car is available is ’employed earner’s employment’ under Social Security law.
