Calculation of employers’ Class 1A National Insurance Contributions

For 2010 the percentage for the calculation of employers’ Class 1A National Insurance Contributions (NICs) on company cars remains as for 2009 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.

From 2011/12 Class 1A contributions will increase to 13.8%.

Author: Lee Sibbald, April 7, 2008

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