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 employeesbenefit. 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.
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.
|Yes or No||Reference||Yes or No||Reference|
|Road fund licence||Yes||NIM05815||No||EIM31215|
|Mileage rate for business miles||Yes||NIM05815|
|Mileage rate for private miles||Yes||NIM05815|
|Payments/benefits in kind||No||No||EIM31215|
|Use of employers or third partys credit or agency card (Conditions in NIM02193 not satisfied)||Yes||NIM05815|
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.
The employer purchases the employees 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 employees benefit. The table shows that the payment is RME but is not a MAP.