Class 1A National Insurance 2026/27: Rate and Deadlines

Class 1A NI calculator

Employer NI on company cars, medical cover and other benefits.

2026/27 rates

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Estimate only. Independent tool, not affiliated with HMRC. Rates checked 20 October 2026. Real payroll rounds each pay period.

Class 1A National Insurance is a yearly employer charge on most benefits in kind, such as company cars and private medical insurance. The rate for 2026/27 is 15% of the value of the benefits. You report the benefits on form P11D and pay the NI by 22 July after the tax year ends. Use the calculator above, then read what counts, the deadlines and how payrolling fits in.

In this guide17 sections

What Class 1A covers

Class 1A applies to benefits you give to employees or directors that are taxable but not subject to Class 1 NI. Common examples:

• Company cars and fuel for private use
• Private medical insurance
• Living accommodation
• Loans on very low or no interest
• Personal expenses you pay for, if not covered by an exemption

Employees do not pay NI on these benefits. Only the employer pays Class 1A.

How it is worked out

Class 1A = taxable value of benefits × 15%

Benefits in the year	Class 1A at 15%
£2,000	£300
£5,000	£750
£10,000	£1,500
£20,000	£3,000
£50,000	£7,500

A company car with a taxable benefit of £8,000 a year costs £1,200 in Class 1A. The employee pays income tax on the £8,000 as well.

Example: a small business with three benefits

Benefit	Value
Company car for a manager	£7,500
Private medical insurance for two staff	£2,400
Interest-free loan	£600
Total	£10,500

Class 1A: £10,500 × 15% = £1,575, due by 22 July.

Key dates

Date	What
5 April	Tax year ends
6 July	Deadline for P11D and P11D(b)
19 July	Class 1A payment due, cheque
22 July	Class 1A payment due, electronic

The P11D(b) is the form that shows the total Class 1A due. You must send it even if you have no benefits to report, unless you tell HMRC you no longer need to.

Benefits that do not attract Class 1A

• Benefits that are covered by the trivial benefits rule (£50 or less)
• Benefits covered by an HMRC exemption
• Items covered by a PAYE Settlement Agreement, which attract Class 1B instead
• Workplace parking and certain work-related training

What is payrolling?

Payrolling benefits means you report and tax them through your normal payroll during the year, instead of on a P11D after it. It changes how the employee’s income tax is collected. It does not remove Class 1A. You still pay Class 1A on payrolled benefits, and you report the total on a P11D(b) by 6 July, with payment by 22 July.

Payrolling can reduce paperwork and spread the employee’s tax across the year. The government has also announced plans to make payrolling of benefits compulsory in future years, so check the start date on GOV.UK.

Class 1A and Employment Allowance

Employment Allowance can reduce your Class 1A bill as well, if there is allowance left after your secondary Class 1 NI. Your payroll software handles this. See the Employment Allowance guide and how to pay HMRC.

Business	Class 1 NI	Class 1A	Total	Allowance used	To pay
Small	£6,000	£1,575	£7,575	£7,575	£0
Mid	£10,000	£1,575	£11,575	£10,500	£1,075

Case study: a company car

A company gives an employee a car with a taxable benefit of £9,000 a year.

Item	Amount
Class 1A at 15%	£1,350
Due date	22 July after the tax year
Employee income tax at 20% on £9,000	£1,800
Employee income tax at 40% on £9,000	£3,600

The employer pays the Class 1A. The employee pays the tax, either through a tax code adjustment or through payroll if the benefit is payrolled.

Calculating the cost of a benefit

When you offer a benefit, count the employer cost, not only the value to the employee.

Benefit	Taxable value	Class 1A	Total employer cost (value plus Class 1A)
Private medical cover	£1,200	£180	£1,380
Company car	£8,000	£1,200	£9,200
Low-interest loan	£500	£75	£575

The comparison with paying the same value as salary is stark. Salary costs the employer 15% employer NI above the threshold as well, and the employee also pays 8% NI and income tax. A benefit usually costs the employer the same 15%, but the employee pays income tax only, with no employee NI.

Mistakes to avoid

1. Missing the 6 July deadline for P11D forms. Penalties apply.
2. Paying Class 1A late. Interest runs from the day after the due date.
3. Treating benefits as expenses when they are really taxable.
4. Forgetting that payrolled benefits still attract Class 1A.
5. Not sending a P11D(b) when Class 1A is due.

Related reading

For the 15% rate across all classes, see the rates page. For payment deadlines in one place, see how to pay employer NI. For the other benefits-related charge, see Class 1B and PSAs.

Common benefits and their Class 1A cost

Benefit	Example taxable value	Class 1A at 15%
Company car, mid-range	£6,000	£900
Electric company car	£2,000	£300
Private medical insurance, one employee	£900	£135
Medical insurance, 10 employees	£9,000	£1,350
Low-interest loan	£400	£60

Company car values depend on list price, CO2 emissions and fuel type, so ask your payroll provider or use HMRC’s company car tool for your actual figure.

A year-end routine for Class 1A

When	What to do
March	List all benefits given in the year
April	Gather values: invoices, car details, loan balances
By 6 July	File P11D forms and the P11D(b)
By 22 July	Pay Class 1A (19 July by cheque)
Afterwards	Keep copies for at least three years

Reducing Class 1A

You can lower the Class 1A bill by not offering a taxable benefit, by choosing electric company cars, which have a low taxable value, or by offering exempt benefits instead. Any change should fit the needs of your staff, not only the tax bill.

Frequently asked questions

What is the Class 1A rate for 2026/27?

15%.

When do I pay Class 1A?

By 22 July after the tax year ends, if you pay electronically. By 19 July if you pay by cheque.

Do employees pay Class 1A?

No. Only the employer does.

What is the difference between Class 1 and Class 1A?

Class 1 is charged on pay through payroll. Class 1A is charged once a year on benefits that are reported on a P11D or payrolled.

Is Class 1A paid on company cars?

Yes, on the taxable benefit value of the car and any fuel.

What if I payroll my benefits?

Income tax is collected through payroll during the year. You still pay Class 1A on the benefits once a year.

Do I have to register to payroll benefits?

Yes. You must register with HMRC before the start of the tax year in which you begin.

Does Employment Allowance reduce Class 1A?

It can, if allowance remains after your secondary Class 1 NI. See the allowance guide.

How is Class 1A different from Class 1B?

Class 1B is paid on items in a PAYE Settlement Agreement. See Class 1B.

Related guides

• Class 1B NI and PAYE Settlement Agreements (2026/27)
• Employer NI Rates 2026/27: All Rates and Thresholds
• How and When to Pay Employer NI to HMRC
• Employer NI on Statutory Pay and Redundancy (2026/27)
• Employment Allowance 2026/27: £10,500 Off Employer NI

Official sources

• Pay Class 1A National Insurance
• National Insurance rates and categories