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Impact of Willmott Dixon on relevant motoring expenditure and National Insurance

24 January 2022 / John Messore , Peter Moroz
Issue: 4825 / Categories: Comment & Analysis
Happy motoring

Key points

  • The employers paid a car allowance to drivers who were to provide their own cars for business travel.
  • HMRC relied on the Laing O’Rourke First-tier Tribunal decision in Willmott Dixon.
  • The extent of the SI 2001/1004 Sch 3 part VIII para 7A disregard.
  • The tribunal in Willmott Dixon found that the car allowance was relevant motoring expenditure.

Readers may be familiar with car allowances relevant motoring expenditure (as defined in Social Security (Contributions) Regulations SI 2001/1004 reg 22A(3)) and National Insurance relief from our articles on the subject in Taxation including ‘Wheels go round – part 1’ (Taxation 15 July 2021 page 12).

Further to the First-tier Tribunal decision in Laing O’Rourke (Laing) (see our article ‘Wheels go round – part 2’ Taxation 26 August 2021 page 8) we are pleased to say that the First-tier Tribunal has...

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