Our company is paying mileage allowance to its employees for business mileages of their private car. But this is paid by cheque instead of through payroll. Is it mandatory for mileage claim to be paid through payroll? Is there any other requriements that we should do?
Thank you
Santina
Replies (2)
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Sounds OK
It sounds like your company is doing things right. When you say payroll, presumably you mean making the payment with the net salary. This is also OK. However, mileage claims should not be liable to deduction of PAYE and NIC.
IR rates
Can't see a problem with that. Obvoiusly if you are paying above the IR approved rates you need to do P11Ds after year end.