NIM05827 - Class 1 NICs: Expenses and allowances: Motoring expenses (including mileage allowances) paid on or after 6.4.02: Relevant motoring expenditure: Comparison with mileage allowance payments
These tables illustrate the differences between relevant motoring expenditure (RME) for NICs ( NIM05815) and mileage allowance payments (MAPs) for income tax (EIM31210), for different types of payments made to or for an employee’s benefit. They provide you with references in the NIM and EIM so you can find more information. The tables do not cover every type of payment made by or on behalf of the employer.
Payments made by or on behalf of the employer to the employee
This table includes payments made by or on behalf of the employer to the employee.
Example
The employer gives the employee £180 to reimburse the cost of paying his road fund licence for his own car. This is a payment made by the employer to the employee. The table shows that the payment is RME but is not a MAP.
| Description | RME | MAP | ||
| Yes or No | Reference | Yes or No | Reference | |
| Depreciation | No | NIM05825 | No | EIM31215 |
| Road fund licence | Yes | NIM05815 | No | EIM31215 |
| Insurance | Yes | NIM05815 | No | EIM31215 |
| Servicing | Yes | NIM05815 | No | EIM31215 |
| Repairs | Yes | NIM05815 | No | EIM31215 |
| Replacement tyres | Yes | NIM05815 | No | EIM31215 |
| Parking fees | No | NIM05825 | No | EIM31215 |
| Tolls | No | NIM05825 | No | EIM31215 |
| Mileage rate for business miles | Yes | NIM05815
NIM05816 | Yes | EIM31210 |
| Mileage rate for private miles | Yes | NIM05815
NIM05821 | No | EIM31210 |
| Payments/benefits in kind | No | No | EIM31215 | |
| Use of employer’s or third party’s credit or agency card (Conditions in NIM02193 not satisfied) | Yes | NIM05815
NIM05819 | No | EIM31215 |
Most of the payments in the table are not MAPs. That is
because the payments are not in respect of business mileage
expenses.
Payments made by or on behalf of the employer to someone other than the employee
Although payments made to someone other than the employee can be RME, they are never MAPs. That is because payments must be made to the employee to be MAPs.
Example
The employer purchases the employee’s road fund licence direct from DVLA. This is a payment made by the employer to someone other than the employee but it is for the employee’s benefit. The table shows that the payment is RME but is not a MAP.
