Payroll Tip: Mileage allowances for essential users

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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...

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19th Sep 2005 09:45

Employee using own car...
Can someone clarify for me the situation regarding an employee who resides some 50 miles from their permanent place of work and occasionally travels a greater distance from their home to meet the client at their premises, than they would cover if they left from the permanent place of work. Is the full distance travelled claimable without T&NI at the 40p/25p rate applicable or is some deduction required in respect of the normal commute distance for example?
Thank you.

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