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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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Class 1 NICs: Expenses and allowances: Motoring expenses (including mileage allowances) paid on or after 6.4.02: Motor cycles

Employees using their privately owned motor cycles for business travel –Regulation 22A of the Social Security (Contributions) Regulations 2001


Some employers pay motoring expenses to employees who use their own motor cycles forbusiness purposes.

The provisions within the NICs motoring expenses scheme

The NICs motoring expenses scheme provides, subject to all the conditions at regulation22A of the SS(C)R 2001, the method for calculating whether NICs are due on any payment ofmotoring expenses for the business use of privately owned motor cycles.

The method for calculating Class 1 NICs liability

The rules for calculating Class 1 NICs liability are the same as those set out forother qualifying vehicles. Qualifying vehicles, including motor cycles, to which theserules apply are defined in section 235 ITEPA 2003, see EIM31255.

The approved mileage rate for motor cycles which is used to calculate the qualifyingamount is provided by section 230(2) ITEPA 2003. For a list of the approved mileage ratesfor the different classes of vehicle including motor cycles, see EIM31240.

For more information about calculating the amount liable for Class 1 NICs includingcalculating the qualifying amount, see NIM05810 onwards.