For 2008/9 the percentage for the calculation of employers’ Class 1A National Insurance Contributions (NICs) on company cars remains as for 2007/8 at 12.8% of taxable value.

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 12.8% to give the annual tax due.

• Vehicle excise duty (VED) in 2008/9
• 2009 vehicle excise duty reform
• Company car tax in 2008/9
• Company car tax: calculating your benefit-in-kind liability in 2008/9
• Business mileage in a private car: reimbursement rates in 2008/9
• Employer-provided ‘free’ fuel for private mileage: benefit or liability?
• Capital allowances to be based on emissions of CO2 from April 2009
• Calculation of employers’ Class 1A National Insurance Contributions
• Company vans
• Biofuels