NIM05827 - Class 1 NICs: Expenses and Allowances: Motoring expenses (including mileage allowances) paid on or after 6 April 2002: Relevant motoring expenditure: Comparison with mileage allowance payments
This table illustrates the differences between relevant motoring expenditure (RME) for NICs (NIM05815) and mileage allowance payments (MAPs) for income tax (EIM31210), for different types of payments made to or for an employee’s benefit. They provide you with references in the NIM so you can find more information. For tax, for the treatment of mileage for business and private use, see EIM31210, for all the other listed expenses in the table, see EIM31215. The tables do not cover every type of payment made by or on behalf of the employer.
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 | Is it RME? | Is it MAP? | NICs reference |
|---|---|---|---|
| Depreciation | No | No | NIM05825 |
| Road Fuel Licence | Yes | No | NIM05815 |
| Insurance | Yes | No | NIM05815 |
| Servicing | Yes | No | NIM05815 |
| Repairs | Yes | No | NIM05815 |
| Replacement tyres | Yes | No | NIM05815 |
| Parking fees | No | No | NIM05825 |
| Tolls | No | No | NIM05825 |
| Mileage rate for business miles | Yes | Yes | NIM05816 |
| Mileage rate for private miles | Yes | No | NIM05821 |
| Payments/benefits in kind | No | No | - |
| Use of employer's or third party's credit card or agency card (NIM02193 not met) | Yes | No | NIM05819 |
Other than the mileage rate for business miles, the other payments in the table are not MAPs. That is because the payments are not in respect 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 never MAPs. That is because payments must be made to the employee to be MAPs.
Example
The employer purchases the employee’s vehicle excise duty (VED) 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.