National Insurance on Benefits you receive from your employer

Your employer will pay National Insurance on benefits in kind – such as a company car – which are given to you as part of your ‘salary package’. This charge is called Class 1A.

There is no National Insurance payable by employees on benefits in kind, though income tax is payable.

More information about Class 1A contributions can be found on the HMRC website here: Class 1A NIC.