---
title: "How is annual allowance for mileage paid?"
slug: "how-is-annual-allowance-for-mileage-paid"
updated: 2026-06-10T11:26:23Z
published: 2026-06-10T11:26:23Z
canonical: "help.cintra.co.uk/how-is-annual-allowance-for-mileage-paid"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.cintra.co.uk/llms.txt
> Use this file to discover all available pages before exploring further.

# How is annual allowance for mileage paid?

Within **Cintra iQ**, you can create a mileage scheme if you are paying above **HMRC** rates for employees using their own car for business purposes. The amount above the **HMRC** rate is subject to tax and NI. The taxable amount would be recorded on a P11d and the NI on the amount is calculated via the payroll.

| Name | Description |
| --- | --- |
| **Annual Allowance** | **Annual Allowance** is an annual amount paid to an employee for using their own vehicle for business miles. |
| **Mileage Payments** | **Mileage Payments** are set amounts paid for each business mile an employee does in their own vehicle. |
| **Passenger Payments** | **Passenger Payments** are set amounts paid for each passenger for each business mile an employee does with a passenger in their own vehicle i.e. if an employee has two passengers and does 60 miles, a payment would be made for 120 units and the appropriate passenger rate. |

If you have entered an **Annual Allowance** amount in the **Mileage Scheme** setup this would be automatically pro-rated and paid each pay period to members of the scheme.