Class 1 NICs: Expenses and allowances: Motoring expenses (including mileage allowances) paid on or after 6.4.02: Mileage allowance relief - effect on NICs
Explanation covering how Mileage Allowance Relief does not have any relevance for NICspurposes
With effect from 6 April 2002, Mileage Allowance Relief (MAR) was introduced for incometax purposes. MAR is a statutory deduction to which employees, who carry out businesstravel in their own cars, vans, motor cycles or cycles, are entitled if they receive lessin mileage allowance payments than the approved (exempt) amount, see EIM31330 onwards.
There is no equivalent to the tax provision for MAR within NICs legislation.
So, where employers pay relevant motoring expenditure which is less than the qualifyingamount (QA) (NIM05830), neither the employer nor the employeecan claim a deduction against the overall NICs liability.
For more information about the position for NICs when the employer pays RME which is lessthan the QA, see NIM05834.