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HMRC internal manual

National Insurance Manual

Class 1 NICs: Expenses and allowances: Mileage allowances: Rules before 6 April 2002: Passenger and/or equipment rates

Regulation 26 and paragraph 9 of Part 8 of Schedule 3 to the Social Security(Contributions) Regulations 2001

There is no NICs liability on any payment an employer makes to an employee to coveradditional expenses incurred in carrying passengers and or equipment, providing thepayment relates specifically to the carrying of a passenger on a business journey.

You must be satisfied that an additional expense has been incurred in carrying passengersor equipment.