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Posted Wed, 01 Dec 2021 08:20:09 GMT by Mike Wood
Hi, Mileage allowance payments have an "approved amount" that is PAYE tax free. - https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax#anything-below-the-approved-amount There's also a "qualifying amount" that's very similar, though for National insurance instead. - https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-national-insurance#what-to-report-and-pay Anything above the approved/qualifying amount is taxable in both cases. "approved amount" is calculated with this table: https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax#tax-rates-per-business-mile "qualifying amount" is calculated with this table: https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-national-insurance#national-insurance-rates-per-business-mile The tables are different. The PAYE tax table has a different rate for above 10,000 miles. The National Insurance table doesn't change above 10,000 miles. The difference seems unusual and unintentional, can you confirm this?
Posted Wed, 01 Dec 2021 14:45:28 GMT by HMRC Admin 17

Hi,
 
We can only comment on the tax rules for mileage.

National Insurance will have its own set of rules and limits.

They may not always be the same. 

Thank you.

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