A car provided by reason of employment to a director or an employee, which is available for private use, attracts a Class 1A liability, as does the provision of any fuel for private use in such cars. There are special rules for Class 1A NICs for cars provided in unusual circumstances.

Detailed guidance on the Class 1A liability arising in respect of company cars and car fuel is given in HMRC booklets CWG5 Class 1A National Insurance contributions on benefits in kind and 480: Expenses and benefits – a tax guide.

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