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Do you pay car allowances?

Opportunity to reclaim National Insurance

Cars

 

Background

The potential for a significant ‘windfall’ repayment of National Insurance (NI) contributions going back up to six years has been highlighted by the case, Total People Limited v HMRC. This is a first tier tribunal ruling and we understand that HMRC has sought permission to appeal to the Upper Tribunal. This is likely to be a lengthy process, but we recommend that employers review the potential for making claims now. This will take very little management time and in many cases can be submitted with no upfront cost to you.

The opportunity arises if you have at any time over the past six years paid a car allowance to your employees for use of their private vehicles (not company vehicles) and you have paid mileage payment at less than 40p per mile (a fairly common scenario).

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