NIM05805 - Class 1 NICs: Expenses
and allowances: Motoring expenses (including mileage allowances)
paid on or after 6.4.02: Types of motoring expenses
General explanation covering types of motoring expenses and
liability for NICs
Background information
Many employers pay motoring expenses to employees who are
required to use their own cars for business purposes. Some
employers may pay motoring expenses to employees provided with
company cars or leased cars. Most employers pay for motoring
expenses for business travel only but some may also pay expenses
for private travel.
The NICs liability for such motoring expenses depends on the
circumstances under which employers make payments to employees.
- See
NIM05810 for motoring expenses paid to
employees who use their own cars for business and or non-business
purposes.
- See
NIM16060 and
NIM16175 for motoring expenses where the
car is provided, for example a company car.
List of common methods for paying motoring expenses
Motoring expenses can include the employer
- making mileage allowance payments –
for more details see
NIM05816
- making regular lump sum payments –
for more details see
NIM05817
- making one off lump sum payments –
for more details see
NIM05818
- allowing the employee to use credit cards
and/or fuel agency cards – for more details see
NIM05819
- meeting the employee’s pecuniary
liability – for more details see
NIM05820
- making a payment in kind – for more
details see
NIM05825
- making payments under an Employee Car
Ownership Scheme (ECOS) - for more details see
NIM05870
