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Hi Sir,
I am not sure if I got this correctly but can you please help me with the following;
I understand the company has to pay class 1A NIC, then the cash equivalent need to be added to the employee earnings for income tax calculations, while I revising I got confused as to which one is exempt and which one is liable to NIC
past exams I found that beneficial loan and medical insurance are exempt from NIC class1
but I am not sure if the employee has to pay NIC 1 for a car benefit as well as income tax
Also, the child car voucher, if the amount exceeded the permitted amount ie 25,28 and 55 do we assess the benefits on all the amount or only on the excess?
for example, if a basic taxpayer receives £ 60 per week will we assess the benefits on only 5 or the whole 60?
Many thanks for your help
Assessable benefits are subject to Class 1A NIC to be paid by the employer only
Class 1 NIC is only chargeable on cash payments made to employees – salary, wages, commission and bonus payments, for example
As regards the child care vouchers, the employee will be assessed on the amount ABOVE the exempt benefit limit
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