Mileage Allowance Confusion

[T5R+]

Help and clarity appreciated…… as unsure and do not want to get into bother with the HMRC.

I live at A and am based at one of the 3 company sites at B. Spend a day a week at our Site C.
A, B and C are totally different towns approx. 30miles apart.
Opt out of the company car scheme (take the allowance) but have a fuel card that covers private mileage.
HR (even though they have a “travel expert”) is not very good and various colleagues are confused.

Confusion:

1. If travel from A (home) to C (different town to my regular workplace) and then home, assume I can claim for the roundtrip. Essentially, £0.45(HMRC allowance upto 10K) x 60(miles).

2. If travel from A (home) to B (regular work place) and then to C (different town), how should I claim. Would ordering of A to C to B make any difference? Essentially, £0.45 x 60(miles) or in the latter scenario £0.45 x 90 (miles…….as go A to C then B then A).

3. When travel from A (home) to B (i.e not my designated workplace but happens to be in the same town) – can I for the round trip i.e 60miles? Would it make any difference if I went to this “other” site first stop in the day or last stop or even spent all day there?

Probably all very simple.

[Eric Mc]

In addition to the "allowance" you are getting (which is really just extra salary) is the company paying for your fuel?

In other words, how is the fuel card settled each month?

[T5R+]

Company calcuates tax liability (at this time they think it all private mileage!) and deducts tax accordingly.

[Eric Mc]

How?

Does the company actually pay to clear the fuel card every month?

[T5R+]

Eric Mc said:

How?

Does the company actually pay to clear the fuel card every month?

Yes. Employer deducts liabilities and pays net into wages/bank.

Apologies, may have confused.....fuel is bought on a "fuel only" credit card (separate card for other company purchased products) and no we do not see nor receive the points associated with the credit card spends.

[Eric Mc]

T5R+ said:

Yes. Employer deducts liabilities and pays net into wages/bank.

So, the employer pays the fuel card off each month but then recovers the amount they paid from you directly by deducting the amount they paid from the salary they pay you?

So, essentially, they don't really pay the fuel bill, you do?

[softtop]

the question I think is, "what is private and what is business?"

The first place to look is your employment contract, if it says you are based at locations A,B and C then none of the travel is business, it is commuting. If you are a home worker then all would potentially be claimable, if it says you are based at A with some travel to B and C then you would need to look at the miles covered on your daily commute and see if you have a claim. If your daily drive is 10 miles and you do 12 going to location B then you get to claim 2 business miles.

I am sure Eric will confirm or correct this.

[Eric Mc]

That is more or less correct. The "normal commute" is ALWAYS looked on as private mileage.

[sumo69]

This is pretty much spot-on.

softtop said:

the question I think is, "what is private and what is business?"

The first place to look is your employment contract, if it says you are based at locations A,B and C then none of the travel is business, it is commuting. If you are a home worker then all would potentially be claimable, if it says you are based at A with some travel to B and C then you would need to look at the miles covered on your daily commute and see if you have a claim. If your daily drive is 10 miles and you do 12 going to location B then you get to claim 2 business miles.

I am sure Eric will confirm or correct this.