Payment for (business) miles at 0p
Discussion
Hi
I am required to have my own car available whenever I am at work - I am paid for any business miles I complete, but frankly I wouldn't take my car to work if I wasn't "required" to.
I am paid a small fixed retainer as part of my salary (which is clearly taxed) - the same value regardless of distance to work etc.
I am clear that HMRC would tax me heavily were I paid to travel to work, but that is not my question - I would like to know...
When I travel to a location that is not my regular place of work directly from home, I discount my normal home to work miles (e.g. travel 40, not paid for the 10 that would be my normal him-to-work distance)
That 10 miles is noted on my payslip as "10 miles at 0p" and I understand that the total of 0p miles is discounted from the HMRC 8500 limit/step (?)
Should I also be noting the 20 miles to & from work for every day I don't do any business miles, not to be paid, but to be discounted?
If I wasn't "required" to have my car there, I wouldn't, and would make alternative arrangements for my commute. I complete a tax return each year, and that 20 miles per day would add up!
Hope that makes sense?!
Thank you!
I am required to have my own car available whenever I am at work - I am paid for any business miles I complete, but frankly I wouldn't take my car to work if I wasn't "required" to.
I am paid a small fixed retainer as part of my salary (which is clearly taxed) - the same value regardless of distance to work etc.
I am clear that HMRC would tax me heavily were I paid to travel to work, but that is not my question - I would like to know...
When I travel to a location that is not my regular place of work directly from home, I discount my normal home to work miles (e.g. travel 40, not paid for the 10 that would be my normal him-to-work distance)
That 10 miles is noted on my payslip as "10 miles at 0p" and I understand that the total of 0p miles is discounted from the HMRC 8500 limit/step (?)
Should I also be noting the 20 miles to & from work for every day I don't do any business miles, not to be paid, but to be discounted?
If I wasn't "required" to have my car there, I wouldn't, and would make alternative arrangements for my commute. I complete a tax return each year, and that 20 miles per day would add up!
Hope that makes sense?!
Thank you!
Not sure I understand 100% but you can never get a deduction for driving to and from your regular, fixed place of work. If you go direct to a client you can claim the 40 miles there and then the 30 miles (or whatever) into the office but not the 10 miles home again. If the client were two miles past the office you could only claim 2 miles
The annual limit for 45 p per mile is 10000 miles not 8500 - after 10k miles drops to the lower rate (cannot remember if 20p or 25p must be my age)
The annual limit for 45 p per mile is 10000 miles not 8500 - after 10k miles drops to the lower rate (cannot remember if 20p or 25p must be my age)
Hi
Thanks for your replies -
I understand that you normally wouldn't be paid for a commute to and from your regular place of work, but I am using my car for that journey in order that the vehicle is available for works use.
If I did not have that "availability" requirement, I wouldn't be driving to work at all.
I am clear that I cannot claim payment, but wouldn't relief be allowable?
Thanks for your replies -
I understand that you normally wouldn't be paid for a commute to and from your regular place of work, but I am using my car for that journey in order that the vehicle is available for works use.
If I did not have that "availability" requirement, I wouldn't be driving to work at all.
I am clear that I cannot claim payment, but wouldn't relief be allowable?
To check I understand, you can't claim from your employer the normal cost of travel but you believe you can from the tax man?
Eg if you went to a client that was 40 miles you'd claim 40 from the tax man (claim as in the difference between your employers payment and the 45/25p amounts) and 30 miles from your employer?
And if you can do this, every day you take the car to work that 10 miles is being incurred by you as you need the car there just in case. And irrespective of whether you went on to a client from work, that 10 miles is also claimable.
As the first point to my understanding is no, the second is. It would only be permissible if your normal place of work was home. You can try and make this claim if you rarely go into the office but I believe your employer needs to record or accept your normal place of work. It's been a battle here as the tax man says any place you visit 2-3 days a week is the normal place, I rarely go into one of our offices and either work at home or visit clients, but they are reluctant to change the location as they would then have to pay expenses when I do go into the office.
Eg if you went to a client that was 40 miles you'd claim 40 from the tax man (claim as in the difference between your employers payment and the 45/25p amounts) and 30 miles from your employer?
And if you can do this, every day you take the car to work that 10 miles is being incurred by you as you need the car there just in case. And irrespective of whether you went on to a client from work, that 10 miles is also claimable.
As the first point to my understanding is no, the second is. It would only be permissible if your normal place of work was home. You can try and make this claim if you rarely go into the office but I believe your employer needs to record or accept your normal place of work. It's been a battle here as the tax man says any place you visit 2-3 days a week is the normal place, I rarely go into one of our offices and either work at home or visit clients, but they are reluctant to change the location as they would then have to pay expenses when I do go into the office.
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