Private Car Drivers (maps & Nics)
termination of employment stems from this process. Prior to 1975, National Insurance cards were exchanged annually, there being Space for 52 weekly or 12 monthly stamps on each card. The cards due for exchange at each quarter end were identified by the NINO suffix as follows: • A - Jan to Mar • B - Apr to Jun • C - July to Aug • D - Sep to Dec. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Following the abolition of the card system in 1975, the suffix letters have been retained and have no special significance but must not be omitted from returns. It is therefore unimportant whether A, B C, or D is inserted as long as one of the four letters is used. PRIVATE CAR DRIVERS (MAPS & NICs) The arrangements for dealing with NICs on motor expenses paid to employees who use their own cars for business purposes changed on 6th April 2002 with the introduction of a statutory scheme. These rules also apply to employees who use their own van, motor cycle or bicycle. The amount to be disregarded from NICs is calculated by reference to the Mileage Allowance Payment (MAP), previously AMAPs, rates for tax purposes (see PART2). Unlike for Income Tax, amounts paid in excess of the MAP rates must to be added to any other earnings in the period in which motoring expenses are paid and Class 1 NICs calculated on the total earnings. Income Tax on sums paid in excess of the MAPs rate are dealt with using the P11D process. For privately owned cars and vans the MAP rate (see PART2) to be applied for NICs purposes is that for the first 10,000 business miles irrespective of the number of miles travelled. All business miles travelled must be used in the calculation whether or not the employee is reimbursed for all business mileage. The rules for paying the passenger rate and determining what constitutes business travel are those applied for tax purposes. These rules apply to all motoring expenses including: • mileage allowances based on a set rate per mile • lump sum business car use allowances • payments for fuel purchased for business use. No printing, copying or reproduction permitted. REDUCED RATE NI CONTRIBUTIONS Up to 11th May 1977, married women or widows could elect to pay NICs at a reduced rate. This principle assumed that their contributory benefits would be protected by their husband’s contributions. Reduced rate contributions were maintained to ‘purchase’ specific and limited benefits - Industrial Injury and Maternity Benefits. In confirmation of her election a Certificate of Election (CA4139, CF383 or CF380A, often called a reduced rate card) was issued to the woman, which must be held by her employer if reduced rate contributions are applied. From 11th May 1977, women with then current and valid Certificates of Election were entitled to continue making contributions at the reduced rate. However, that right automatically ceases under certain circumstances:
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