Traction

Leasing | Contract Hire | Fleet Management

Make an enquiry and we will search our vast collection of cars to find the one for you.

Make an enquiry

FAQS

What is the Current Annual Percentage Rate for Calculating Class 1A National Insurance Contributions?

Class 1A National Insurance Contributions (NICs) must be paid by the employer for each vehicle provided to an employee for personal use. Class 1 NICs are based on the vehicle’s P11D value and relevant Benefit in Kind (BIK) rate.

The level of NICs is also determined by an annual percentage rate which is 13.8% in financial year 2021/22.

The BIK rates used in the calculation can be found here.

The basic calculation to determine the amount of Class 1A NICs payable is as follows:

P11D value x BIK rate based on CO2 × 13.8% = NIC (2021/22)

Examples:

VW ID.3

P11d value – £32,200 | BIK rate – 1%

(32,200 × 1%) x 13.8% = £44.44

Porsche Taycan

P11d value – £88,272 | BIK rate – 1%

(88,272 × 1%) x 13.8% = £121.82

BMW 520d

P11d value – £43,540 | BIK rate – 35%

(43,540 × 35%) x 13.8% = £2,102.98

 

 

 

> Back to FAQS

Contact Us

+44 28 9030 9000

+353 1 601 2000

info@tractionfinance.com