Glossary · UK
What is Class 1A National Insurance?
Employer NI charged at 15% on most Benefits in Kind (P11D items).
Full Definition
Class 1A NI is the employer-only National Insurance contribution on most Benefits in Kind (BIK) given to employees and directors — company cars, private medical insurance, gym membership, employer-provided loans over £10k. Charged at 15% from April 2025 (up from 13.8%) on the cash-equivalent value of the benefit. Due by 22 July following the tax year, paid via PAYE. Employees pay income tax on the benefit value but no NI on most BIK (a key tax advantage of BIK over cash).
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.