Mileage Claims

[Swole]

So I’ve recently started with a new employer. The job is good, it is well paid but the company is small and they have no idea about employment law or obligations to their employees. It is family-run and anyone in the head-management tier is a family member with no clue, so they’ve brought a few of us corporate types of varying skill to bring in some order.

Anyway, I have a permanent place of work but, I have been posted most of my week for the last three at a work site which is around 55 miles from home and the head office is not bypassable en-route. I use my own car and have had to upgrade the insurance to cover. So, my question is, am I entitled to claim the full 55miles each way for this journey?

My employer has it in their mind that mileage payments are a benefit in kind and that if I claim anything I will be taxed heavily (see what I mean). I know this to be untrue, and that mileage is claimable at up to £0.45 per mile up to 10k, and £0.25 per mile over 10k without taxation; HMRC have verified this.

Their second arguement was that if I claim mileage, they will only pay the distance from the office to the work site and not from home. How true is this?

I just want to make sure I know where I stand.

[BRISTOL86]

They have no obligation to pay you anything (though it’s not particularly reasonable to not do so) but you’ll be entitled to tax relief at the HMRC approved rate

Regarding the distance, everywhere I’ve worked the policy has been that your normal commute is not included, so if I’ve done 50 miles and my normal commute is 5 I would claim 45.

I’ve always just claimed the distance from my normal permanent base to wherever I’m going.

Edited by BRISTOL86 on Tuesday 17th April 11:18

[Sheepshanks]

Swole said:

Their second arguement was that if I claim mileage, they will only pay the distance from the office to the work site and not from home. How true is this?

It's quite normal for firms, and pretty standard in the public sector, to subtract the home to office mileage - use triangulation.

Oddly you can claim the whole mileage for tax purposes.

[warch]

You are correct that the mileage should not be taxable.

My current employer pays mileage over the distance between the office and back (in my case about 55 miles). So any job with a less than 55 mile round trip isn't claimable. Obviously this system benefits people who live nearer our office but then that's my choice where I live.

I would ask for the use of a company vehicle if they are going to persist with this.

[Marcellus]

I think it's down to individual negotiation, i've worked for comapnies that have done it both ways, as long as they're consistent in application then their company their rules.

Whatever they do pay, upto the £0.45/£0.20? Shoudl be tax free.

[Munter]

Sheepshanks said:

Swole said:

Their second arguement was that if I claim mileage, they will only pay the distance from the office to the work site and not from home. How true is this?

It's quite normal for firms, and pretty standard in the public sector, to subtract the home to office mileage - use triangulation.

Oddly you can claim the whole mileage for tax purposes.

Yep that's the same for my lot as well.

[Eric Mc]

Home to office travel is deemed to be "the normal commute" and therefore cannot be claimed from the employer or, if it is, WOULD be deemed to be a taxable Benefit in Kind. The employee cannot claim tax relief on this mileage either.

Office to customer/client/supplier etc is deemed ALLOWABLE work related travel and can be claimed.

If the employer pays up to 45p per business mile (up to 10,000 miles), there is no Benefit in Kind arising.

Above 10,000 miles, the non BIK rate drops to 25p per mile.

If the employer pays mileage at rates below the 45p/25p threshold, the employee can make a separate tax relief claim to HMRC for the difference.

Your employers need to get their act together regarding what they are supposed to know. At the very minimum they should talk to their accountants or payroll bureau (if they use one) about such matters.

[Swole]

Thanks all.

So, my commute to my office is 25miles each way, and the commute to the site I am at is 55 miles each way. Like I say, I don’t bypass the office at all so, would I be able to claim for the portion of miles over my normal commute (55 minus 25 = 30)?

[mcbook]

Swole said:

Thanks all.

So, my commute to my office is 25miles each way, and the commute to the site I am at is 55 miles each way. Like I say, I don’t bypass the office at all so, would I be able to claim for the portion of miles over my normal commute (55 minus 25 = 25)?

Yep, that's right. Overlooking the basic maths error ;-)

[Swole]

mcbook said:

Yep, that's right. Overlooking the basic maths error ;-)

Haha you were quick. I’m fingers and thumbs today, and brainless.

[Sheepshanks]

Swole said:

Thanks all.

So, my commute to my office is 25miles each way, and the commute to the site I am at is 55 miles each way. Like I say, I don’t bypass the office at all so, would I be able to claim for the portion of miles over my normal commute (55 minus 25 = 30)?

That's correct if that's the policy your employer has.

For HMRC purposes though, you can claim tax relief on the whole journey. You can even call in at the office to pick up documents etc, and still claim the whole journey.

[Eric Mc]

Sheepshanks said:

That's correct if that's the policy your employer has.

For HMRC purposes though, you can claim tax relief on the whole journey. You can even call in at the office to pick up documents etc, and still claim the whole journey.

Are you saying HMRC allows a person to claim tax relief on "the normal commute"?

[Sheepshanks]

Eric Mc said:

Are you saying HMRC allows a person to claim tax relief on "the normal commute"?

No, but they can claim the whole journey if they go to a different location. As long as dropping into the office was incidental to the main journey.

[Eric Mc]

Understood.

You just need to be very careful with mileage claims (employed or self employed).

You don't want to end up like Dr Samadian -

https://www.taxation.co.uk/Articles/2014/02/05/320...

[Terminator X]

BRISTOL86 said:

They have no obligation to pay you anything (though it’s not particularly reasonable to not do so) but you’ll be entitled to tax relief at the HMRC approved rate

Regarding the distance, everywhere I’ve worked the policy has been that your normal commute is not included, so if I’ve done 50 miles and my normal commute is 5 I would claim 45.

I’ve always just claimed the distance from my normal permanent base to wherever I’m going.

Edited by BRISTOL86 on Tuesday 17th April 11:18

What about if they go to work by train and have bought a season ticket thus every car journey is "extra" to them. To me it is pedantic in the extreme to not simply pay someone their mileage from home to wherever it is they are going if work related and indeed that is what I have always done with other people's expenses. If the OP feels strongly enough about it and the £'s are painful then perhaps look for another job where your employer will treat you better.

TX.

[Swole]

Terminator X said:

What about if they go to work by train and have bought a season ticket thus every car journey is "extra" to them. To me it is pedantic in the extreme to not simply pay someone their mileage from home to wherever it is they are going if work related and indeed that is what I have always done with other people's expenses. If the OP feels strongly enough about it and the £'s are painful then perhaps look for another job where your employer will treat you better.

TX.

They do have a funny view on things here. It’s like they’ve been forced to bring people in who know processes (HR, Projects, Accounts etc) because they are floundering but, they are quite hostile to us “outsiders” and EVERYTHING is scruntinised as if we are all here to steal from them. It is most obscure, but the money is quite frankly beautiful so, hard to stick the two middles ones to.

[Marcellus]

Terminator X said:

What about if they go to work by train and have bought a season ticket thus every car journey is "extra" to them. To me it is pedantic in the extreme to not simply pay someone their mileage from home to wherever it is they are going if work related and indeed that is what I have always done with other people's expenses. If the OP feels strongly enough about it and the £'s are painful then perhaps look for another job where your employer will treat you better.

TX.

Surely in this case your normal commute woudl be from home to the station car park.

[Marcellus]

Swole said:

They do have a funny view on things here. It’s like they’ve been forced to bring people in who know processes (HR, Projects, Accounts etc) because they are floundering but, they are quite hostile to us “outsiders” and EVERYTHING is scruntinised as if we are all here to steal from them. It is most obscure, but the money is quite frankly beautiful so, hard to stick the two middles ones to.

Well in a you are, every penny they pay you, plus all other employment costs, is less they can share between themselves... unless of course you marry the daughter.

[Terminator X]

Marcellus said:

Terminator X said:

What about if they go to work by train and have bought a season ticket thus every car journey is "extra" to them. To me it is pedantic in the extreme to not simply pay someone their mileage from home to wherever it is they are going if work related and indeed that is what I have always done with other people's expenses. If the OP feels strongly enough about it and the £'s are painful then perhaps look for another job where your employer will treat you better.

TX.

Surely in this case your normal commute woudl be from home to the station car park.

What about if they walk to the station? My point is that if work is taking you somewhere else other than the "office" it should simply be paid for no questions asked. Some people will live closer to work, others won't so surely for the business it makes fk all difference? Treat your staff well FFS it's not that hard.

TX.

[surveyor]

Agreed

I had one employer who did this. The result was I would either go into the office first, or leave home at my start time, rather than being at my first inspection at my start time...