car allowance

car allowance

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is a car allowance paid to an employee for use of their own car liable to ee's NI?

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By Democratus
19th Jul 2011 10:03

More Info

You won't get a sensible answer without providing more onformation.

Is it a flat rate payment? Is it mileage based? Is it within HMRC guidelines? Why are you only looking at EEs NIC?

 

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By ACDWebb
19th Jul 2011 10:04

On what basis is it paid?
Mileage rate based on actual?Monthly round sum?

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By Crouchy
19th Jul 2011 10:16

thanks

monhtly round sum

 

not mileage based at all

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By neileg
19th Jul 2011 10:56

Payroll the payment

Tax, Er's and Ee's

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By rockallj
19th Jul 2011 11:46

Yep, agree with neileg

It's just treated as part of salary and isn't a reimbursement of expenses. So Er's, ee's and PAYE all applicable.

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By User deleted
19th Jul 2011 13:09

Would just add

If the employee keeps a mileage log they can make a claim under s336 ITEPA 2003

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By Democratus
19th Jul 2011 15:51

Also

My fellow Awebbers have responded accurately and succinctly - watch out for the payment falling as pensionable aswell. Depends on the terms of the pension trust deed or Ts & Cs. Just in case.

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