National Insurance on Benefits you receive from your employer
National insurance for employees and employers
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.
Class 1B contributions are paid by an employer if there is an arrangement with HMRC called a PAYE settlement agreement. This applies where the employer agrees to pay the tax cost which would otherwise fall on the employee.