The following table, which is adapted from Class 1A National Insurance contributions on benefits in kind (CWG5) summarises the liability arising in respect of the provision of benefits in kind.

Type of expense or benefit provided

Circumstances

Class 1 NICs due (include in gross pay)

Class 1A NICs due

Assets placed at the employee’s disposal

provided for business use, and private use is not significant

No

No

provided for mixed business and private use

No

Yes

Assets transferred to the employee but not readily convertible assets

can be turned into cash only by sale, such as furniture, kitchen appliances, property and clothes

No

Yes

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