Class 1 NICs: Expenses and allowances: Motoring expenses (including mileage allowances) paid on or after 6.4.02: Class of NICs due
Whether Class 1 or Class 1A NICs are payable (Rules apply from 6 April 2002)
Employers may provide assistance in a variety of forms to meet costs incurred byemployees using a privately owned car for business purposes. Where the employer
- pays motoring expenses which includes payments to the employee and payments to third parties to settle an employees pecuniary liability, for example servicing costs, the payments are relevant motoring expenditure (RME) for the purposes of the NICs motoring scheme. A liability for Class 1 NICs may arise. See NIM05810. Such payments are not mileage allowance payments for income tax purposes, see EIM31210.
- provides a benefit in kind, a liability for Class 1A NICs may arise. Such payments are not mileage allowance payments for income tax purposes, see EIM31210.
Benefits or payments in kind, are not RME for the purposes of the NICs motoringexpenses scheme. See NIM05815 for an explanation of what areRME in relation to the NICs motoring expenses scheme.
For more information about the Class of NICs due on mileage allowances before 6 April2002, see NIM05703.
For more information about the treatment of benefits or payments in kind for NICs purposessee NIM13000 onwards.