How is annual allowance for mileage paid?

Modified on Tue, 10 Dec at 3:06 PM

Within Cintra iQ, you can create a mileage scheme if you are paying above HMRC rates for employees using their own car for business purposes. The amount above the HMRC rate is subject to tax and NI. The taxable amount would be recorded on a P11d and the NI on the amount is calculated via the payroll.

Name	Description
Annual Allowance	Annual Allowance is an annual amount paid to an employee for using their own vehicle for business miles.
Mileage Payments	Mileage Payments are set amounts paid for each business mile an employee does in their own vehicle.
Passenger Payments	Passenger Payments are set amounts paid for each passenger for each business mile an employee does with a passenger in their own vehicle i.e. if an employee has two passengers and does 60 miles, a payment would be made for 120 units and the appropriate passenger rate.

If you have entered an Annual Allowance amount in the Mileage Scheme setup this would be automatically pro-rated and paid each pay period to members of the scheme.