We have two schemes that permit payments to be made up to a maximum rate tax-free and with no liability for NICs for business travel in an employee's own vehicle. The maximum rate for tax is different in some respects from the maximum rate for NICs. Follow this link for guidance on the two schemes.

Where payments for business travel are less than the maximum allowed an employee can obtain mileage allowance relief, but only for tax.

If passengers are carried in a vehicle on business travel the employer can also pay passenger payments up to a maximum rate tax-free and with no liability for NICs.

The two schemes and mileage allowance relief do not apply to payments made in relation to company vehicles, which are those owned or made available by the employer. For guidance on company vehicles look at car benefit.

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