Mileage allowance

Questions from our Forum – 28/11/11

By Ian Holloway

The following is a selection of questions that have been posted to our Forum over the past week.  Can you contribute to any of the discussions?………… Forum Post An employer wants to pay a lump sum amount in respect of business mileage every month.  This would be subject to tax and NICs.  However, if he [...]

Mileage allowance payments and essential user allowances

By Payroll-help

Upper Tax Tribunal confirms that MAPS lump sums are only approved if they are made in respect of relevant motoring expenditure. In a decision dating back to August 2010 in the case Total People Ltd v Revenue & Customs, the First-tier Tax Tribunal allowed an appeal against an HMRC decision that the lump sum payments [...]

Budget – Mileage allowance payments

By Payroll-help

For employees required to use their own car or van for work, the approved mileage rate for cars and vans will increase, from April 2011, to 45p per mile (up from 40p) for the first 10,000 miles in a tax year, and 25p per mile thereafter.  For NICs purposes, the new limit is 45p per [...]

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