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Issue:
4898
/
Categories:
Comment & Analysis
, ITEPA
, mileage relief
, Willmott Dixon (TC8359) (WD)
, Business
Wheels can keep on rolling
Key points
- Appeal concerned the operation of National Insurance on mileage allowances.
- Definition of relevant motoring expenditure in Social Security (Contributions) Regulations SI 2001/1004 reg 22A.
- Upper Tribunal concluded how staff spend the allowance is irrelevant to the legislation – all that is relevant is the purpose applied by the employer.
- HMRC may appeal because it has nothing to lose.
- Unlikely to open floodgates to claims because few protective claims have been submitted.
This is a landmark ruling and the draft decision was released to the instructing agents on 3 July 2023 (see Synopsis). Ironically this was the same day that MPs were debating whether the 45p approved mileage allowance payment (AMAP)/mileage allowance relief rates should be increased to 60p a mile (tinyurl.com/govhansard3july). That rate has been the same since 2011 despite motoring costs having increased substantially since then.
It was stated in the...
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