Class 1A National Insurance

Most taxable benefits are liable to Class 1A National Insurance. This is an employer only charge. The Class 1A rate is aligned with the secondary Class 1 rate and is set at 13.8% for 2024/25.

The Class 1A charge for payrolled benefits and those reported on the P11D is calculated on the P11D (b), which is the statutory Class 1A return and also the employer’s declaration that all required P11D’s have been submitted. Benefits included within a PSA are not taken into account in the calculation; Class 1B National Insurance contributions are payable instead.

Like the P11D, the P11D (b) must be filed online by 6 July 2025, using either PAYE Online (for employers with 500 or fewer P11D’s only) or commercial software.

The Class 1A National Insurance must be paid by 22 July where payment is made electronically. If payment is made by cheque, it must reach HMRC by Friday 18 July as 19 July 2025 falls on a Saturday. Interest is charged at 4% above the Bank of England rate if the payment is made late.

Penalties may be charged where P11D or P11D (b) returns are late or incorrect.