NIM05821 - Class 1 NICs: Expenses and allowances: Motoring expenses (including mileage allowances) paid on or after 6 April 2002: Relevant motoring expenditure - payments for private use of a vehicle

Payments that are relevant motoring expenditure: payments for private use of a vehicle– Applies from 6 April 2002

Payments that meet the cost of an employee’s private travel are RME. Some employers make payments that compensate an employee for costs incurred undertaking private travel. For example, by providing fuel for private use. Although such payments are RME, remember that the calculation of the qualifying amount (QA) limits the amount of RME that can be disregarded from earnings. To calculate the QA see NIM05830.