Relevant Motoring Expenditure NIC refund & ex-employers

[Collectingbrass]

I've just had a letter telling me I am due a small refund of my Class 1 National Insurance payments on my current employment due to "Relevant Motoring Expenditure"

This seems to have arisen from a couple of Employer cases against HMRC.

Tax Adviser Magazine said:

It is well known that there is relief for business mileage driven in a private car under Income Tax (Earnings and Pensions Act (ITEPA) 2003 ss 229-231 (mileage allowance relief). It is a straightforward matter of deducting 45p per business mile from taxable earnings; or if the employer has reimbursed the driver, then the total of the relief/amount paid tax free cannot exceed 45p per business mile. There is a reduction to 25p per mile where the business mileage exceeds 10,000 miles in a tax year. The issue debated in the courts relates to the mechanism and law underpinning a similar relief in respect of NICs.

It seems that HMRC lost the argument (excuse me while I play my smallest fiddle) and that employers can reclaim NICs. I've had an automatic & unexpected refund from my current employer which will pay for tonight's coke & hookers pizza. I had a previous employer of the same scale and who operated a similar car allowance and business mileage scheme, is it likely I will get a refund automatically there or will I need to make a claim direct to HMRC?


Article here