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HMRC internal manual

National Insurance Manual

Class 1 NICs: Expenses and Allowances: Mileage allowances: Class of NICs due

If an employer

  • reimburses an employee the costs of using their own car for business travel, either by way of a mileage allowance or by exact reimbursement

    • see NIM05708 for payments made before 6 April 2002
    • see NIM05815 and NIM05816 for payments made on or after 6 April 2002
  • provides fuel and meets other costs directly, for example by supplying fuel from the employer’s own fuel pump or by contracting direct with a garage for servicing and repairs, Class 1A NICs may be due, see NIM05660.