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NIM05701 - CLASS 1 NICS: EXPENSES AND ALLOWANCES: MILEAGE ALLOWANCES: INTRODUCTION In broad terms, mileage allowances fall into two main categories: * payments aimed at covering a range of
expenses connected with motoring. These are normally paid to those employees who are required to use a privately owned car for business travel, see NIM05702 * payments only for fuel.
Employers may pay these to employees who use vehicles the employer provides, see NIM16175; or they may pay them to employees who use a privately owned car for business travel, see: *
NIM05708 for payments made before 6 April 2002; and * NIM05800 for payments made after 5 April 2002. Where, unusually, an employer pays a mileage allowance to an employee wholly for private
travel, see: * NIM05708 where the car is privately owned for payments made before 6 April 2002 * NIM05800 where the car is privately owned for payments made after 5 April 2002 * NIM16175
where the employer provides an employee with a car. The definitions and rules applied to determine qualifying business travel, including business mileage, are the same for both tax and NICs,
see EIM32015. Next page Print this page