»Ê¹ÚÌåÓýapp

Background to the NICs motoring expenses scheme operative from 6 April 2002 - Social Security (Contributions) (Amendments) Regulations 2002, SI 2002 No 307

Introduction

»Ê¹ÚÌåÓýapp Inland Revenue introduced a statutory scheme for dealing with NICs liability on motoring expenses paid to employees using their own vehicles for business travel in the above regulations laid on 13 February 2002.

Effective date

»Ê¹ÚÌåÓýapp scheme is effective from 6 April 2002 and replaced the previous administrative arrangements used before 6 April 2002.

See NIM05708 for further guidance on the rules to use for periods before 6 April 2002.

»Ê¹ÚÌåÓýapp equivalent scheme for income tax

»Ê¹ÚÌåÓýappre is an equivalent scheme for tax but, while the tax and NICs schemes were aligned as much as possible, they differ in various ways. You should not assume that something that is true for one scheme is also true for the other.

Guidance on the income tax scheme begins at EIM31205.

Effects of the NICs motoring expenses scheme

»Ê¹ÚÌåÓýapp rules deal with how HMRC treat motoring expense payments relating to privately owned vehicles from 6 April 2002. For more information see NIM05802 onwards.

»Ê¹ÚÌåÓýapp scheme also deals with the provision of mileage allowance payments paid to employees who use their own cycles for business travel. For more information about how the NICs motoring expenses scheme applies to cycles see NIM05865.

Exclusions from the NICs motoring expenses scheme

»Ê¹ÚÌåÓýapp new rules do not change how HMRC will treat motoring expense payments:

• paid for private motoring, see NIM05708
• paid for using a company car, see NIM16000 and NIM16175
• supplied by means of a benefit in kind, see NIM13020 and NIM16170.