The Inland Revenue introduced a statutory scheme for dealing with NICs liability on motoring expenses paid to employees using their own vehicles for business travel in the above regulations laid on 13 February 2002.
The scheme is effective from 6 April 2002 and replaced the
previous administrative arrangements used before 6 April 2002.
See NIM05708 for further guidance on the rules to use for periods before 6 April 2002.
There is an equivalent scheme for tax but, while the tax and
NICs schemes were aligned as much as possible, they differ in
various ways. You should not assume that something that is true for
one scheme is also true for the other.
Guidance on the income tax scheme begins at EIM31205.
The rules deal with how HMRC treat motoring expense payments
relating to privately owned vehicles from 6 April 2002. For more
The scheme also deals with the provision of mileage allowance payments paid to employees who use their own cycles for business travel. For more information about how the NICs motoring expenses scheme applies to cycles see NIM05865.
The new rules do not change how HMRC will treat motoring expense payments: