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HMRC internal manual

National Insurance Manual

Class 1 NICs: Expenses and allowances: Motoring expenses (including mileage allowances) paid on or after 6.4.02: Relevant motoring expenditure - general

Defining relevant motoring expenditure - Regulation 22A(3) of the Social Security(Contributions) Regulations 2001 (Applies from 6 April 2002)

A payment is relevant motoring expenditure (RME) if

  • it is a mileage allowance payment within the meaning of the Approved Mileage Allowance Payments (AMAPs) scheme for tax purposes, see EIM31210
  • it would be such a payment but for the fact that it has been paid to another for the benefit of the employee
  • it is any other form of payment, except a payment in kind (payments in kind are not RME), paid to, or for the benefit of, the employee in respect of the use of a qualifying vehicle by the employee.

For the purposes of the NICs motoring expenses scheme, ‘qualifying vehicle’has the same meaning as vehicles to which Part 4 Chapter 2 of ITEPA 2003 applies exceptthat for NICs purposes it does not include a cycle. See the first part of EIM31255 fordetails of vehicles covered by Part 4 Chapter 2 of ITEPA 2003.

Payments within the definition of relevant motoring expenditure

RME is the aggregate of all payments described above paid in the same earnings period.

The definition of RME is wider than the meaning of ‘mileage allowance payments’that are taken into account in working out tax liability.

For more information about payments that are RME, see NIM05816 onwards.

For information about payments that are not RME, see NIM05825.