Car Allowance

Good morning, I have asked this question couple of days ago but have received any reply. Please advise, can an employer pay an employee a car allowance through payroll where an employee hasn't got a driving licence. To my knowledge employee have to have a full UK driving licence to qualify for it. If licence is necessary what documentation do an employer need to obtain from employee? I would really appreciate your expert opinions!

Hi,
 

In terms of tax and national insurance a car allowance is just additioanl earnings which will be  subject to tax and national insurance accordingly. Whether someone has a drving license or not will affect the tax or national insurance posiiton. Potentially you may wish to  seek legal or contractual advice on this matter as may be contractgual implications to consider. Thank you .