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. »Ê¹ÚÌåÓýapp example below illustrates how employers can calculate the liability.

In the 2025 to 2026 tax year, an employer provides

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

»Ê¹ÚÌåÓýapp employer reports each benefit on the individual employeesâ€� P11Ds. »Ê¹ÚÌåÓýapp Class 1A NICs percentage rate for the 2025 to 2026 tax year is 15%.

»Ê¹ÚÌåÓýapp Class 1A NICs payable by the employer are calculated as follows
Ìý

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