What's normal business mileage allowance these days?
Discussion
Your company can pay you:
40p per mile for the first 10,000 miles
25p per mile after that
without you incurring any tax. Anything above that is liable for benefit in kind (taxed as income).
However, it's up to your company how much they pay you, could be much lower than above. However, if they're below the above you can claim tax relief on the difference.
40p per mile for the first 10,000 miles
25p per mile after that
without you incurring any tax. Anything above that is liable for benefit in kind (taxed as income).
However, it's up to your company how much they pay you, could be much lower than above. However, if they're below the above you can claim tax relief on the difference.
Tom H said:
Well I got 42p per mile but she gets 35p so depends on what your employers are willing to pay bear in mind companies are tightening up
In this case HMRC will treat the 2p as earned income as it is above the 40 limit. The 5p below the limit may be treated as an allowance and off set against income tax.Oh, and check your insurance. Some policies have been pulling the class 1 business use and making it a cost option for the plicy holder only.
Edited by Starfighter on Tuesday 23 November 19:53
survivalist said:
Your company can pay you:
40p per mile for the first 10,000 miles
25p per mile after that
without you incurring any tax. Anything above that is liable for benefit in kind (taxed as income).
However, it's up to your company how much they pay you, could be much lower than above. However, if they're below the above you can claim tax relief on the difference.
Indeed, which was why I was wondering what was typical these days?40p per mile for the first 10,000 miles
25p per mile after that
without you incurring any tax. Anything above that is liable for benefit in kind (taxed as income).
However, it's up to your company how much they pay you, could be much lower than above. However, if they're below the above you can claim tax relief on the difference.
My employer, a public organisation, pays something like 53p a mile.
However, they are more restrictive in what journeys you can claim for.
For example if you start your journey from home you cannot claim your normal work to office mileage. This prevents people starting working from home everyday and being able to claim miles. Although it may end up with people unecessarily driving into work in the morning and then going to meetings.
The downside is that of course for many people, they could ork out better under the HMRC system than what work provides us with. I have never used the HMRC system but I understand it pays for journeys when you start at home.
They reckon it works out better for us tax wise.
However, they are more restrictive in what journeys you can claim for.
For example if you start your journey from home you cannot claim your normal work to office mileage. This prevents people starting working from home everyday and being able to claim miles. Although it may end up with people unecessarily driving into work in the morning and then going to meetings.
The downside is that of course for many people, they could ork out better under the HMRC system than what work provides us with. I have never used the HMRC system but I understand it pays for journeys when you start at home.
They reckon it works out better for us tax wise.
Mojooo, I would have thought that is fairly standard in that these rates are not meant for normal commuting between office and home.
Also, most places seem to reduce claim for normal journey, eg. my drive to work is 12 miles, so if a client is 30 miles away then I can claim for the additional 22.
Also, most places seem to reduce claim for normal journey, eg. my drive to work is 12 miles, so if a client is 30 miles away then I can claim for the additional 22.
Indeed, however I was under the impression that if we were on the HMRC rates anyone going to a site that is not their workplace could claim for the entire journey. Which means those that work from home and make a lot of site visits would be better off.
All depends on your job I guess.
It seems your workplace has taken steps to combat this though.
All depends on your job I guess.
It seems your workplace has taken steps to combat this though.
I work in ICT for local government getting 47.9ppm, only do 1,500 work miles a year due to the way we now utilise where staff live in the county and visit all jobs in one area on a single trip.
Some staff get an 'essential' allowance of around £80 a month but mileage is then paid at 9ppm, this perk is being phased out in our department.
Checking of claims we submit is poor, mileage figures and trips are not questioned, relies on staff being truthful, though it is a dismisable offence if caught out.
I've only once been asked to provide proof I have business insurance, I have class 1 but have been told I don't need this level as I do not need to insure equipment I am transporting.
We can claim for mileage from our office base to where we visit, if leaving from home to visit we deduct the difference of home to base which leads to fun maths if the visit takes me in the opposite direction of base when leaving home (ie heading north to visit when my base is south of home).
Some staff get an 'essential' allowance of around £80 a month but mileage is then paid at 9ppm, this perk is being phased out in our department.
Checking of claims we submit is poor, mileage figures and trips are not questioned, relies on staff being truthful, though it is a dismisable offence if caught out.
I've only once been asked to provide proof I have business insurance, I have class 1 but have been told I don't need this level as I do not need to insure equipment I am transporting.
We can claim for mileage from our office base to where we visit, if leaving from home to visit we deduct the difference of home to base which leads to fun maths if the visit takes me in the opposite direction of base when leaving home (ie heading north to visit when my base is south of home).
Edited by StevoCally on Tuesday 23 November 23:22
Edited by StevoCally on Tuesday 23 November 23:22
Searider said:
Mojooo said:
My employer, a public organisation, pays something like 53p a mile.
Do you then have to pay tax on the extra 13p over the allowable 40p?And as above.
If my home to work is 50 miles and I have to visit a site 100 miles away. I will only get paid the 50miles excess, but I still have to provide them with 2 figures. My home to work mileage and then the excess mileage. Although I don;t get paid for the first 50 miles they use that mileage for tax purposes but I have no idea what.
As far as I understand it under the HMRC rules if I did that journey above I could claim the full 100 miles at 40p as opposed to 50 miles at 53p - so I would be far better off under HMRC rules. But I spose it balances out on other journeys.
I would imagine the employer does it this way because it suits them rather than us. Just recently they wanted to lower the mileage rate 'in line' with the HMRC rate of 40p but they did not want people to be able to claim from home to other sites, so it wasn't like for like.
Petrolhead_Rich said:
Mojooo said:
claim your normal work to office mileage
WTF?I have to take off the "normal commute" mialage from my mialage claims, I certainly don't get paid for home-office commute!!
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