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Benefits made available either directly by the employer or by a third party on their behalf are subject to Class 1A contributions on the assumed value to the recipient, unless the same benefit or value is already subject to Class 1 contributions, when the latter liability prevails to the exclusion of the former. All sums paid to an employee in respect of expenses and all benefits otherwise within the tax provisions which are provided by an employer for an employee or members of their family or household are deemed to be so provided by reason of their employment, except (where the employer is an individual) payments or benefits made in the normal course of their domestic, family or personal relationships¹. For a useful summary of the National Insurance position of the most popular benefits, see Leaflet CWG5, Appendix 1².

In broad terms, all benefits which are required to be recorded on the P11D for tax purposes are potentially subject to Class 1A contributions, and the value of those benefits for