NIM05703 - Class 1 NICs: Expenses
and Allowances: Mileage allowances: Class of NICs due
To determine whether Class 1 NICs or Class 1A NICs are due on
any form of assistance an employer provides in meeting the costs
involved in using a privately owned car for business purposes, it
is important to establish how the assistance is provided.
If an employer
- reimburses an employee the costs of using
their own car for business travel, either by way of a mileage
allowance or by exact reimbursement
- provides fuel and meets other costs
directly, for example by supplying fuel from the employer’s
own fuel pump or by contracting direct with a garage for servicing
and repairs, Class 1A NICs may be due, see
NIM06050.
