With effect from 6 April 2002, Mileage Allowance Relief (MAR) was introduced for income tax purposes. MAR is a statutory deduction to which employees, who carry out business travel in their own cars, vans, motor cycles or cycles, are entitled if they receive less in mileage allowance payments than the approved (exempt) amount, see EIM31330 onwards.
There is no equivalent to the tax provision for MAR within NICs
So, where employers pay relevant motoring expenditure which is less than the qualifying amount (QA) ( NIM05830), neither the employer nor the employee can claim a deduction against the overall NICs liability.
For more information about the position for NICs when the employer pays RME which is less than the QA, see NIM05834.