helping you keep what you earn
Paying or claiming round sum mileage allowance?
December 5, 2011HMRC have recently been successful in making round sum mileage expenses subject to NIC.
If you pay or claim a fixed amount per month for mileage, plus a small amount per mile, then you could be storing up a NIC liability, even if the total amount paid is less than the 45p per mile tax free allowance.
You should therefore ensure that future claims are based on “relevant motoring expenditure” and there must be a link between the payment and the number of miles actually driven.
