NIM05702 - Class 1 NICs: Expenses and allowances: Mileage allowances: Normal components of a mileage allowance
The normal components of a mileage allowance are:
- fuel
- oil and other lubricants
- the additional insurance costs incurred as a result of using a car for business related travel
- road fund licence
- servicing, repairs and replacements
- depreciation.
Although the payment of mileage allowances is one way employers reimburse employees the costs they incur using a privately owned car for business travel, employers may choose to meet the cost by:
- repayment of the exact costs involved, see NIM05020
- regular round sum allowances, see NIM06160
- supplying fuel from their own fuel pump, see NIM05662
- requiring the employee to use a garage with which the employer has an account, see NIM05662
- providing fuel vouchers, NIM05662
- supplying the employee with a company credit card or fuel agency card, see NIM05662