HRD & Payroll Solutions looked at car tax allowances and reporting procedures, in one of a series of HR and payroll tips for HR Zone.
How should essential user allowances that are paid to employees who use their own cars for business purposes be reported?
Payments of mileage allowances are only reported for tax purposes on form P9D or P11D if the total of all mileage allowance payments made in the year exceed the statutory maximum for the vehicle (ie. car, van, motorcycle or bicycle).
If more than the maximum is paid, only the excess is reported. A similar procedure applies for Class 1 NICs, but the comparison between the payments made an...