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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 - payments for private use of a vehicle

Payments that are relevant motoring expenditure: payments for private use of a vehicle– Applies from 6 April 2002

Payments that meet the cost of an employee’s private travel are RME. Someemployers make payments that compensate an employee for costs incurred undertaking privatetravel. For example, by providing fuel for private use. Although such payments are RME,remember that the calculation of the qualifying amount (QA) limits the amount of RME thatcan be disregarded from earnings. To calculate the QA see NIM05830.