National Insurance contributions
Companies are liable to pay Class 1A National Insurance contributions where staff are provided with vehicles on which they are taxed for private use. For 2009/10 the amount is calculated at 12.8 per cent of a car’s taxable value.
For example, if a car’s CO2 emissions place it in the 20 per cent bracket for benefit-in-kind tax, the employer pays 12.8 per cent of the taxable value of the car (20 per cent of the P11D value).
The 2009 Pre-Budget Report stated the level of National Insurance would increased by one percentage point to 13.8 per cent from April 2011.
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