Another mileage question
Discussion
Hi folks, hope the finance / tax folks can answer this question.
Just started a new role. Contractually, I'm based in London where I have a desk and visit at least once per week. I get there on the train (drive to station). Also my contract includes a car allowance.
I travel once a week to another site (manly site A but there is a site B) which I travel by car (and stay over if >1 day needed). Rest of time I work from home.
The company expenses say mileage claim is 45p per mile. Given the above, can I claim the 45p per mile when I go to A or B or is this supposed to be covered by the car allowance ? Can't find anything in company info.
If I can claim, what distance do I claim...is it the full distance from home to site A or B. eg If for example : home to London office is 20 miles, home to A or B is 100 miles. Does the normal commute to contractual office have any bearing or do I claim 100 miles ?
Thanks for any clarification or pointers to the right legislation
Just started a new role. Contractually, I'm based in London where I have a desk and visit at least once per week. I get there on the train (drive to station). Also my contract includes a car allowance.
I travel once a week to another site (manly site A but there is a site B) which I travel by car (and stay over if >1 day needed). Rest of time I work from home.
The company expenses say mileage claim is 45p per mile. Given the above, can I claim the 45p per mile when I go to A or B or is this supposed to be covered by the car allowance ? Can't find anything in company info.
If I can claim, what distance do I claim...is it the full distance from home to site A or B. eg If for example : home to London office is 20 miles, home to A or B is 100 miles. Does the normal commute to contractual office have any bearing or do I claim 100 miles ?
Thanks for any clarification or pointers to the right legislation
Car allowance is usually to allow you to run a car for work like if you did not have one sitting on the drive already. i.e. to help with paying lease/PCP costs/purchase cost etc. When travelling to a site that is not where you are contracted you would usually be able to claim mileage for this.
This is how it has worked at my previous companies and also where I currently work....although I am unlikely to drive to any of our offices with my current role (Israel and Boston).
This is not to say that this is the same for all companies though and I am not up on legalities.
Off topic (but may help in figuring out the above) - What I do know is if driving to site A only, then you can insure car for commuting. If you drive to Site B occasionally then you need Class 1 business use as well
ETA -Sorry misread OP a bit. Site A and Site B should both be claimable. As to where you claim from, hopefully work can tell you. Usually it will be either from your Main office or from home.
This is how it has worked at my previous companies and also where I currently work....although I am unlikely to drive to any of our offices with my current role (Israel and Boston).
This is not to say that this is the same for all companies though and I am not up on legalities.
Off topic (but may help in figuring out the above) - What I do know is if driving to site A only, then you can insure car for commuting. If you drive to Site B occasionally then you need Class 1 business use as well
ETA -Sorry misread OP a bit. Site A and Site B should both be claimable. As to where you claim from, hopefully work can tell you. Usually it will be either from your Main office or from home.
Edited by smashie on Friday 28th July 20:03
HMRC allows an employee to receive 45p per mile tax free (up to 10,000 miles) for work related travel AS LONG AS THE JOURNEY IS NOT THE "NORMAL COMMUTE".
In most cases, the "normal commute" would be home to work. However, if there is more than one normal place of work, than the "normal commute" may be from home to more than one destination ESPECIALLY if the other location is stipulated in your employment contract.
In most cases, the "normal commute" would be home to work. However, if there is more than one normal place of work, than the "normal commute" may be from home to more than one destination ESPECIALLY if the other location is stipulated in your employment contract.
He can claim from his employer for those miles that he travels on business related journeys without fear of being taxed as long as the claim does not exceed 45p per mile for the first 10,000 miles and 25p thereafter. Of course, how much he ACTUALLY gets from the employer is down to the mileage policy of his employer. Some employers DO pay up to 45p per mile, many pay a lot less.
"Normal Commute" travel never counts as a "business journey".
If the employer DOES pay mileage for "normal commutes", this income would be taxable.
"Normal Commute" travel never counts as a "business journey".
If the employer DOES pay mileage for "normal commutes", this income would be taxable.
Thanks folks. I will check with HR but the director who I have worked with is on hols, hence a quick question on here. My contracted place of work is London, but I have to travel to other sites as needed. I'm new at the moment so am travelling every week to get to know the ropes at the 2 other sites.
Thanks
Thanks
My old employer (who was a bit crap-ita) had a slick expense system. I had a car allowance so 'only' paid the 15p ish mileage rate for biz trips. But my pay slip each month was adjusted to give me the marginal tax back on 45p-15p difference.
As per comments (and eric tax guru) above mileage claimed should be the smaller of distance from home or 'usual place of work' to site.
I think if you only do 1 day a week at an office u could argue that is not your usual place of work. My old employer would not let u have a building pass unless more than2-3 days a week at that office to help make it clear to hmrc where u worked.
As per comments (and eric tax guru) above mileage claimed should be the smaller of distance from home or 'usual place of work' to site.
I think if you only do 1 day a week at an office u could argue that is not your usual place of work. My old employer would not let u have a building pass unless more than2-3 days a week at that office to help make it clear to hmrc where u worked.
Chozza said:
Careful with how regularly you attend site A. Its possible to have more than one permanent location ...which then means you cant claim. ( or I think that's what my accountant told me..)
Yep I nearly fell foul of that with HMRC, it comes down to whether you travel there to do your job or in pursuance of your job, they can term it another place of work and have you on BIK.If you're home based then you should be able to claim .45p for the trips you do to any site for business purposes up to 10k and .25p after that, I'm home based and claim for them all, company sites and clients.
Edited by Wills2 on Sunday 6th August 00:05
Wills2 said:
Chozza said:
Careful with how regularly you attend site A. Its possible to have more than one permanent location ...which then means you cant claim. ( or I think that's what my accountant told me..)
Yep I nearly fell foul of that with HMRC, it comes down to whether you travel there to do your job or in pursuance of your job, they can term it another place of work and have you on BIK.If you're home based then you should be able to claim .45p for the trips you do to any site for business purposes up to 10k and .25p after that, I'm home based and claim for them all, company sites and clients.
That's just what the tax man allows. His employer might have an altogether different scheme. (and probably will in view of the fact he gets a car allowance)
Edited by Wills2 on Sunday 6th August 00:05
Steve Campbell said:
Hi folks, hope the finance / tax folks can answer this question.
Just started a new role. Contractually, I'm based in London where I have a desk and visit at least once per week. I get there on the train (drive to station). Also my contract includes a car allowance.
I travel once a week to another site (manly site A but there is a site B) which I travel by car (and stay over if >1 day needed). Rest of time I work from home.
The company expenses say mileage claim is 45p per mile. Given the above, can I claim the 45p per mile when I go to A or B or is this supposed to be covered by the car allowance ? Can't find anything in company info.
If I can claim, what distance do I claim...is it the full distance from home to site A or B. eg If for example : home to London office is 20 miles, home to A or B is 100 miles. Does the normal commute to contractual office have any bearing or do I claim 100 miles ?
Thanks for any clarification or pointers to the right legislation
Are there not two rates depending on the engine size?Just started a new role. Contractually, I'm based in London where I have a desk and visit at least once per week. I get there on the train (drive to station). Also my contract includes a car allowance.
I travel once a week to another site (manly site A but there is a site B) which I travel by car (and stay over if >1 day needed). Rest of time I work from home.
The company expenses say mileage claim is 45p per mile. Given the above, can I claim the 45p per mile when I go to A or B or is this supposed to be covered by the car allowance ? Can't find anything in company info.
If I can claim, what distance do I claim...is it the full distance from home to site A or B. eg If for example : home to London office is 20 miles, home to A or B is 100 miles. Does the normal commute to contractual office have any bearing or do I claim 100 miles ?
Thanks for any clarification or pointers to the right legislation
SantaBarbara said:
Steve Campbell said:
Hi folks, hope the finance / tax folks can answer this question.
Just started a new role. Contractually, I'm based in London where I have a desk and visit at least once per week. I get there on the train (drive to station). Also my contract includes a car allowance.
I travel once a week to another site (manly site A but there is a site B) which I travel by car (and stay over if >1 day needed). Rest of time I work from home.
The company expenses say mileage claim is 45p per mile. Given the above, can I claim the 45p per mile when I go to A or B or is this supposed to be covered by the car allowance ? Can't find anything in company info.
If I can claim, what distance do I claim...is it the full distance from home to site A or B. eg If for example : home to London office is 20 miles, home to A or B is 100 miles. Does the normal commute to contractual office have any bearing or do I claim 100 miles ?
Thanks for any clarification or pointers to the right legislation
Are there not two rates depending on the engine size?Just started a new role. Contractually, I'm based in London where I have a desk and visit at least once per week. I get there on the train (drive to station). Also my contract includes a car allowance.
I travel once a week to another site (manly site A but there is a site B) which I travel by car (and stay over if >1 day needed). Rest of time I work from home.
The company expenses say mileage claim is 45p per mile. Given the above, can I claim the 45p per mile when I go to A or B or is this supposed to be covered by the car allowance ? Can't find anything in company info.
If I can claim, what distance do I claim...is it the full distance from home to site A or B. eg If for example : home to London office is 20 miles, home to A or B is 100 miles. Does the normal commute to contractual office have any bearing or do I claim 100 miles ?
Thanks for any clarification or pointers to the right legislation
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