Calculation of employers’ Class 1A National Insurance Contributions

The percentage for the calculation of employers’ Class 1A National Insurance Contributions (NICs) on company cars rose to 13.8% of taxable value from the tax yaer 2011/12.

To calculate the annual Class 1A NICs due, you need to know the car’s taxable value, derived from multiplying the P11D price by the relevant BIK tax percentage. This is then multiplied by 13.8% to give the annual tax due.

For more information, visit the HMRC website.

Updated: February 2012.