Fleet News

Company Car Tax: National Insurance contributions

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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