Research and analysis

Net Pay Arrangements: Flat Rate Expenses and Mileage Allowance Relief

Research to understand barriers and incentives of adopting Flat Rate Expenses and the Mileage Allowance Relief Optional Reporting Scheme


Net Pay Arrangements for Flat Rate Expenses (FREs) & review of MARORS processes

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Flat Rate Expenses (FREs) are deductions given to individuals to cover certain work expenses.

Mileage Allowance Relief (MAR) is available for some employees who use their own vehicle for business purposes.

This study explored the processes involved in claiming for FREs and MAR and how HM Revenue & Customs (HMRC) could improve this for customers. The report contains findings from qualitative research conducted with a sample of employers, employees and payroll agencies. There were two main objectives:

  • explore how employer Net Pay Arrangements might work for FREs
  • explore how the current MAR and Mileage Allowance Relief Optional Reporting Scheme (MARORS) processes could be improved to inform a better customer experience
Published 9 September 2015