Mileage claims
Discussion
Work have just changed the policy on claiming mileage allowance (ie under the 45p/25p scheme)
Now we have to calculate our mileage from either home or work, using whichever is shorter. The kicker is that even if I've had to go to the office before going to a client they still want me to calculate the shorter route, so I could be a tender out if pocket every day- it soon adds up!
Any arguments I can use to argue against this change?
Now we have to calculate our mileage from either home or work, using whichever is shorter. The kicker is that even if I've had to go to the office before going to a client they still want me to calculate the shorter route, so I could be a tender out if pocket every day- it soon adds up!
Any arguments I can use to argue against this change?
As I understand it, the rule about using the shorter for mileage claims has been in force for years so, if your Office was en-route from Home to Destination, you would only claim the Office to Destination part of the journey, not the Home to Office part - the thinking goes that you would be making that journey as a commute anyway.
I have something at the back of my mind that says there is some kind of provision that precludes an equivalent mileage even if your travel from Home to Destination takes you in a completely different direction from Home to Office.
I have something at the back of my mind that says there is some kind of provision that precludes an equivalent mileage even if your travel from Home to Destination takes you in a completely different direction from Home to Office.
You know you can claim tax back on the difference?
Mileages should be based on the ACTUAL journey for tax purposes. So if you go 50 miles from home to client, but client is 30 miles from work, the company may only give you 30 miles, but you can claim tax relief for the 50 mile journey.
Anyone getting paid for the 'longer' journey if they didn't actually make that journey may want to check that they don't owe any tax!
Employers can essentially pay whatever they like (and if it's over the HMRC guidelines make sure it is taxed).
You could always say that you can't afford it with the new rules.
Mileages should be based on the ACTUAL journey for tax purposes. So if you go 50 miles from home to client, but client is 30 miles from work, the company may only give you 30 miles, but you can claim tax relief for the 50 mile journey.
Anyone getting paid for the 'longer' journey if they didn't actually make that journey may want to check that they don't owe any tax!
Employers can essentially pay whatever they like (and if it's over the HMRC guidelines make sure it is taxed).
You could always say that you can't afford it with the new rules.
Edited by blank on Sunday 3rd August 16:58
blank said:
You know you can claim tax back on the difference?
Mileages should be based on the ACTUAL journey for tax purposes. So if you go 50 miles from home to client, but client is 30 miles from work, the company may only give you 30 miles, but you can claim tax relief for the 50 mile journey.
Eric may be along soon, but I'm not sure that's entirely accurate. (although the chances of being picked up are slim)Mileages should be based on the ACTUAL journey for tax purposes. So if you go 50 miles from home to client, but client is 30 miles from work, the company may only give you 30 miles, but you can claim tax relief for the 50 mile journey.
Edited by blank on Sunday 3rd August 16:58
Pretty sure it is accurate (I've looked into it a lot and do a fair few business miles).
If a journey is 50 miles and for business, and the company pays you less than 45p x 50 = £22.50 then you can claim a tax deduction on the difference (assuming first 10k of business miles).
Whether that difference is because the employer doesn't pay 45p per mile, pays mileage from office, or deducts your normal commute mileage (which some places do) isn't relevant.
If a journey is 50 miles and for business, and the company pays you less than 45p x 50 = £22.50 then you can claim a tax deduction on the difference (assuming first 10k of business miles).
Whether that difference is because the employer doesn't pay 45p per mile, pays mileage from office, or deducts your normal commute mileage (which some places do) isn't relevant.
blank said:
Pretty sure it is accurate (I've looked into it a lot and do a fair few business miles).
If a journey is 50 miles and for business, and the company pays you less than 45p x 50 = £22.50 then you can claim a tax deduction on the difference (assuming first 10k of business miles).
Whether that difference is because the employer doesn't pay 45p per mile, pays mileage from office, or deducts your normal commute mileage (which some places do) isn't relevant.
But, travel to a normal place of work cannot be (technically) claimed under AMAP. So, if an 80 mile trip contains a nominal 30 "private" miles only 50 miles may be claimed tax freeIf a journey is 50 miles and for business, and the company pays you less than 45p x 50 = £22.50 then you can claim a tax deduction on the difference (assuming first 10k of business miles).
Whether that difference is because the employer doesn't pay 45p per mile, pays mileage from office, or deducts your normal commute mileage (which some places do) isn't relevant.
A client or customer's office isn't a normal place of work though. Normal place of work is the permanent office base.
https://www.gov.uk/government/publications/490-emp...
That link has lots of useful examples.
Triangulation is perfectly reasonable but isn't a requirement.
https://www.gov.uk/government/publications/490-emp...
That link has lots of useful examples.
Triangulation is perfectly reasonable but isn't a requirement.
blank said:
A client or customer's office isn't a normal place of work though. Normal place of work is the permanent office base.
https://www.gov.uk/government/publications/490-emp...
That link has lots of useful examples.
Triangulation is perfectly reasonable but isn't a requirement.
Yes, but the OP's question does relate to triangulation, that's why his firm are making the adjustment. (as well as saving some wonga https://www.gov.uk/government/publications/490-emp...
That link has lots of useful examples.
Triangulation is perfectly reasonable but isn't a requirement.
)Yeah the employer can reduce mileage payments through triangulation, different amounts for different engine sizes, paying less than HMRC rates or whatever they want.
But the HMRC rates and rules are what they are, so anything the employer does that is less than this can lead to a tax deduction, as anything above would lead to a tax liability.
The employer can do what they like (within bounds of contracts obviously). They don't HAVE to pay anything (I get no mileage rate and no car allowance, but have other things which mean it's not an issue).
If you point out the document I linked above, that explains business journeys can start at home, they might let you claim it from home because "HMRC say so" even though they don't have to.
But the HMRC rates and rules are what they are, so anything the employer does that is less than this can lead to a tax deduction, as anything above would lead to a tax liability.
The employer can do what they like (within bounds of contracts obviously). They don't HAVE to pay anything (I get no mileage rate and no car allowance, but have other things which mean it's not an issue).
If you point out the document I linked above, that explains business journeys can start at home, they might let you claim it from home because "HMRC say so" even though they don't have to.
blank said:
Yeah the employer can reduce mileage payments through triangulation, different amounts for different engine sizes, paying less than HMRC rates or whatever they want.
But the HMRC rates and rules are what they are, so anything the employer does that is less than this can lead to a tax deduction, as anything above would lead to a tax liability.
The employer can do what they like (within bounds of contracts obviously). They don't HAVE to pay anything (I get no mileage rate and no car allowance, but have other things which mean it's not an issue).
If you point out the document I linked above, that explains business journeys can start at home, they might let you claim it from home because "HMRC say so" even though they don't have to.
C'mon, just say you gave bad advice But the HMRC rates and rules are what they are, so anything the employer does that is less than this can lead to a tax deduction, as anything above would lead to a tax liability.
The employer can do what they like (within bounds of contracts obviously). They don't HAVE to pay anything (I get no mileage rate and no car allowance, but have other things which mean it's not an issue).
If you point out the document I linked above, that explains business journeys can start at home, they might let you claim it from home because "HMRC say so" even though they don't have to.
2 sMoKiN bArReLs said:
Or to put it a different way. Your advice to the OP was he could claim perceived unpaid business mileage from HMRC. I'm saying it ain't that simple because they may not be business miles in the view of HMRC.
I hope that clears it up?
You're right, but they are business miles according to those HMRC docs.I hope that clears it up?
If not, then the OP owes some tax if they've been paid up until now!
HMRC don't make it easy to work out what's correct, and I'm sure Eric MC will be along to point out that their own documents are often wrong aswell...
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