Passenger payments are:

• payments made to employees on business travel
• in cars or vans
• for carrying as passengers fellow employees who are also travelling on business.

Passenger payments are available for travel in:

• an employee's own car or van, or
• a company vehicle provided the employee is chargeable to tax on car benefit or van benefit.

Passenger payments are free of both tax and NICs if they are within the statutory maximum amount for passenger payments. You can find guidance on the maximum amounts for tax at EIM31400 onwards and for NICs at NIM05870.

No relief is available to the employee where passenger payments are not made or the amounts paid are less than the maximum.

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