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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 - pecuniary liabilities

Payments that are relevant motoring expenditure: pecuniary liabilities – appliesfrom 6 April 2002

For information about pecuniary liabilities see EIM00580. Some employers arrange fortheir employees to submit bills which the employee has personally incurred for repayment.For example, fuel and service bills for which the employee has contracted with theprovider.

Providing such payments are paid in recognition of the use of the employee’sprivately owned car, they fall within the definition of relevant motoring expenditure.

Income tax position

This is one of the differences between the NICs motoring expenses scheme and the incometax statutory scheme. For income tax purposes, pecuniary liability payments are notmileage allowance payments, see EIM31210, so must be returned on form P11D in the normalway.