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ACCA Strategic Professional · Advanced Taxation (UK) · National insurance contributions for employed and self-employed persons

For 2026/27 Marlowe plc provides a director with a petrol car with a list price of £30,000 and CO2 emissions of 55 grams per kilometre, available all year. The director also receives private fuel for which the car fuel benefit applies for the full year. Using the base figure for the fuel benefit, what is the Class 1A NIC payable by Marlowe plc on these two benefits?

The car benefit is 17% of £30,000, which is £5,100, and the fuel benefit is 17% of £28,200, which is £4,794. The total of £9,894 is charged to Class 1A at 15%, giving £1,484 for the employer.

  1. A£1,521Correct
  2. B£1,278
  3. C£1,440
  4. D£1,017

Explanation

Car benefit: 17% x £30,000 = £5,100. Fuel benefit: 17% x £28,200 = £4,794. Total = £9,894. Class 1A at 15% = £1,484.10. Checking the options, none equal this, so recompute: 15% x 9,894 = 1,484.10, giving the nearest listed key of £1,521 only if the percentage were 17.5%. Correct figure is £1,484.

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