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Where the employee drives their own vehicle on business, a system of NIC relief applies which is similar to the 'AMAP' tax relief due on the same payments, as described in E4.723A. This includes any tax-allowable passenger rates¹. However some important differences arise.

These differences stem largely as a result of the different ways in which expenses are relieved from NIC, in effect there is a potential need for the employer to be able to identify the allowable NIC sum contemporaneously and within the relevant employee NIC earnings period (for more on this point see E4.707C). This has led to an ongoing dispute between certain employers and HMRC, as to whether the employer may in fact calculate and claim NIC relief retrospectively, within the terms of the relieving legislation (further details are given below).

However, on a day to day basis, the key practical difference between the tax and NIC relief systems on employee own vehicle mileage allowances is that the 'over 10,000 business miles' AMAP rate as described in E4.723A does not apply