Cars and vans
|
|
Tax free (per mile) |
NICs free (per mile) |
|
First 10,000 miles |
40p |
40p |
|
10,001 and over |
25p |
40p |
Car mileage payments - NICs oddity
Providing that the employer reimburses an employee at the AMAPs rates there is no PAYE or NICs liability. However, the tax-free amounts are difference for PAYE and NICs.
This means that if an employer reimburses mileage at 40p for all qualifying business journeys, a taxable benefit will arise only for tax purposes. This does not need to be put through the payroll, it is a P11D benefit in kind. Contributed by Peter Arrowsmith to the ICAEW’s February 2010 issue of Taxline.
Passengers, motorbikes and bicycles
The rates are the same whatever the mileage.
| Claimant | Rate per mile |
| Passenger | 5p |
| Motorcycle | 24p |
| Cyclist | 20p |
