Section 10(7)(b) and 10(7B) SSCBA 92 (before 6 April 2003 – section 10(7) SSCBA 1992)Class 1A NICs are not due on benefits where an employee is capable of receiving a fully matching tax deduction (i.e. cash equivalent of benefit is the same as the available deduction) under any of the following sections of ITEPA 2003. The equivalent ICTA 1988 reference is shown in brackets.

Section 336 (section 198) – Deductions for expenses.

Sections 343 and 344 (section 201) – Deductions for professional membership fees and annual subscriptions.

Section 346 (section 201AA) – Deductions for employee liabilities.

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