NIM05755 - Class 1 NICs: Expenses and Allowances: Mileage allowances: Rules before 6 April 2002: Methodist Ministers
The Methodist Church pays motor allowances to its ministers and deaconesses who use their own cars for business purposes.
Until April 1996 the Methodist Church operated a complex motoring allowance scheme. In general, NICs liability on these mileage allowances was assessed on the total annual allowances, averaged over total business miles travelled.
From 6 April 1996, the Methodist Church:
- abolished its previous motoring allowances scheme; and
- since then has reimbursed motoring costs by way of a straight forward single mileage rate for all cars, regardless of engine size.
For the period to 5 April 2002, the mileage rate paid by the Methodist Church is the average of the two middle bands of the Inland Revenue鈥檚 Authorised Mileage Rates (AMR).
No Class 1 NICs liability arises on mileage allowances paid to Methodist Ministers which are based on the average of the Inland Revenue鈥檚 鈥榰p to 4,000 miles鈥� AMRs. This applies irrespective of the number of business miles travelled and, for tax years upto and including 2001/2002, the car鈥檚 engine size.
For further information on the general NICs treatment of mileage allowances see NIM05708.