The payment of car allowances and mileage allowance payments can have significant financial implications for employers and employees. Employers must ensure they fully understand how income tax and NICs legislation applies to the payments they make, ensuring they can access the income tax and NICs relief available. The recent Upper Tribunal decision in Laing O’Rourke Services Ltd & Wilmott Dixon Holdings Ltd, which HMRC has decided not to appeal, will make obtaining relief easier and should ensure NICs are not paid unnecessarily on payments made to an employee to use their private car for business purposes.
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The payment of car allowances and mileage allowance payments can have significant financial implications for employers and employees. Employers must ensure they fully understand how income tax and NICs legislation applies to the payments they make, ensuring they can access the income tax and NICs relief available. The recent Upper Tribunal decision in Laing O’Rourke Services Ltd & Wilmott Dixon Holdings Ltd, which HMRC has decided not to appeal, will make obtaining relief easier and should ensure NICs are not paid unnecessarily on payments made to an employee to use their private car for business purposes.
If you are not a subscriber, subscribe now to read this content.
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