RME claims the wheels continue to turn

I refer readers to our earlier articles on the Laing O’Rourke (LOR) (TC8161) and Willmott Dixon (WD) (TC8359) First-tier Tribunal (FTT) cases in respect of reclaiming National Insurance contributions (NICs) for earlier years on business mileage driven by employees in their own car(s) – ‘Wheels go round: part 2’ (26 August 2021) and ‘Happy motoring’ (27 January 2022). The situations where such a claim may arise are relatively common where a payment of business mileage is made to an employee in receipt of a car allowance.

The business mileage payment is typically less than 45p per mile because it normally covers fuel only and the car allowance which is being paid to the driver to ensure they have a car available for business use covers the other running costs. The driver can claim tax relief (up to 45p/mile less mileage rate reimbursed) but the issue under debate...