NIM15030 - Class 1A National Insurance contributions: Calculating Class 1A NICs: Calculating the total amount of Class 1A NICs due in a tax year: Example

NIM15010 explains how to calculate the amount of Class 1A NICs due. The example below illustrates how employers can calculate the liability.

In the 2025 to 2026 tax year, an employer provides

  • 10听employees with cars available for private use, the cash equivalent of each is 拢6,000
  • 250 employees with private medical care, the cash equivalent of each is 拢300
  • 25 employees with vans available for private use, the cash equivalent of each is 拢500
  • 3 employees with interest free loans, the cash equivalent of each is 拢3,000.

The employer reports each benefit on the individual employees鈥� P11Ds. The Class 1A NICs percentage rate for the 2025 to 2026 tax year is 15%.

The Class 1A NICs payable by the employer are calculated as follows
听

Number of employees Cash equivalent of each benefit (拢) Total cash equivalent for all employees (拢)
10 6000 60000
250 300 75000
25 500 12500
3 3000 9000
- Total 156,500
Class 1A NICs due 15% of 拢156,500 拢23,475