Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
, see all updates

Class 1 NICs: Expenses and allowances: Motoring expenses (including mileage allowances) paid on or after 6.4.02: Relevant motoring expenditure: Comparison with mileage allowance payments

These tables illustrate the differences between relevant motoring expenditure (RME) forNICs (NIM05815) and mileage allowance payments (MAPs) forincome tax (EIM31210), for different types of payments made to or for an employee’sbenefit. They provide you with references in the NIM and EIM so you can find moreinformation. The tables do not cover every type of payment made by or on behalf of theemployer.

Payments made by or on behalf of the employer to the employee

This table includes payments made by or on behalf of the employer to the employee.

Example

The employer gives the employee £180 to reimburse the cost of paying his road fund licence for his own car. This is a payment made by the employer to the employee. The table shows that the payment is RME but is not a MAP.

Description RME MAP    
         
Yes or No Reference Yes or No Reference  
Depreciation No NIM05825 No EIM31215
Road fund licence Yes NIM05815 No EIM31215
Insurance Yes NIM05815 No EIM31215
Servicing Yes NIM05815 No EIM31215
Repairs Yes NIM05815 No EIM31215
Replacement tyres Yes NIM05815 No EIM31215
Parking fees No NIM05825 No EIM31215
Tolls No NIM05825 No EIM31215
Mileage rate for business miles Yes NIM05815    
NIM05816 Yes EIM31210    
Mileage rate for private miles Yes NIM05815    
NIM05821 No EIM31210    
Payments/benefits in kind No   No EIM31215
Use of employer’s or third party’s credit or agency card (Conditions in NIM02193 not satisfied) Yes NIM05815    
NIM05819 No EIM31215    

Most of the payments in the table are not MAPs. That is because the payments are not inrespect of business mileage expenses.

Payments made by or on behalf of the employer to someone other than the employee

Although payments made to someone other than the employee can be RME, they are neverMAPs. That is because payments must be made to the employee to be MAPs.

Example

The employer purchases the employee’s road fund licence direct from DVLA. This is a payment made by the employer to someone other than the employee but it is for the employee’s benefit. The table shows that the payment is RME but is not a MAP.