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Business Mileage

  • Fellow
  • 4 posts
  • # 71316

Hi, I have a client who has anoffice in one location, say London and employs staff who live up to 200 miles away. The staff sometimes visit the office but mostly work on various sites as the projects demand. the sites can be anywhere in the UK.  Can anyone help me sort out how they can claim business mileage please?
Lady M
  • Fellow PM.Dip
  • Practice Licence
  • 258 posts
  • # 71321

Hi Carol,

I believe they can only claim 45p per mile (for the first 10,000 miles) and then 25p per mile for every mile thereafter without a P11D benefit arising. They have to keep records of the miles they travel for business, where they went etc etc. For more information please visit http://www.hmrc.gov.uk/paye/exb/a-z/m/mileage-expenses.htm

The HMRC is the best place to get this info.

Hope that helps!

Edited at 25 May 2011 07:28 AM GMT
Mad Liz
  • 145 posts
  • # 71327

The HMRC approved rate is 40p per mile for 10K, followed by 25p per mile, Lady M.

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Lady M
  • Fellow PM.Dip
  • Practice Licence
  • 258 posts
  • # 71328

Hi Liz,

It has gone up to 45p for the year 2011-12. Please check the link.
Mad Liz
  • 145 posts
  • # 71329

Lady M said:

“Hi Liz,

It has gone up to 45p for the year 2011-12. Please check the link.”

My apologies.  I did check the HMRC website before I posted but it obviously gave incorrect information on that page.

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Lady M
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  • Practice Licence
  • 258 posts
  • # 71330

No problem Smile it is confusing because it shows last year's rates first, but then it shows this year's rates a little lower down.
Liz D
  • 273 posts
  • # 71335

Hi Carol

Do you want a template of a mileage expenses sheet?  Pretty simple one for even the worst person at paperwork.    Just email me.

As an after thought - the employer does not have to pay as much as the HMRC guidelines.  This is the amount that an employer can pay without it attracting deductions.  Although it is the industry norm......

Kind regards

Liz 

 elizabeth.dawson@dsbs.info
  • Fellow PM.Dip
  • Practice Licence
  • 115 posts
  • # 71337

Plus then can claim an extra 5p a mile if they carry a passenger who is an employee.

Mike
  • 115 posts
  • # 71359

I think also that if the employer doesnt pay the full 45p per mile, the employee can claim the rest from hmrc, but Im not 100% sure.

Steve
  • 698 posts
  • # 71361

Hi All

Yes Steve you are correct in that you can claim the difference on any amount paid under the 45ppm for the first 10,000 miles.

The most important thing to qulaify when it comes to mileage claims is what is the business mileage.

Journeys to and from your normal place of work do not count as business miles nor does the first and last journey's made during the day. this point is important when looking at site based staff if they leave their home and drive 200 miles to site to start work then that 200 mile journey is deemed as personal and subsquent journeys on that day are counted as business mileage if they were incurred for the business.

Within the office their are various opinions as to how correct the above is so it is worth speaking to HMRC on a case by case basis as it depends on incremental mileage and direction of travel and the industry you are within.

Best regards
Stuart

 

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Peasie
  • Member PM.Dip
  • Practice Licence
  • 481 posts
  • # 71365

Steve said:

“I think also that if the employer doesnt pay the full 45p per mile, the employee can claim the rest from hmrc, but Im not 100% sure.

Steve”
They can get tax relief of the difference. HMRC won't pay the difference directly. What I mean is if an employer pays the employee 20p per mile and they travel 9000 miles in a year (£1800), HMRC won't send the employee a cheque for £2250 (9000 miles @ 45p - 20p). They will get tax relief of that so it works out at £450. That's my understanding. 
http://www.hmrc.gov.uk/incometax/relief-travel.htm
  • Fellow
  • 4 posts
  • # 71374

Hi

Thanks everyone for your time and effort in your replies. I think Stuart you are right that I will need to contact HMRC.The distinction between home to office (personal mileage) and business mileage is very hard to establish when site workers are involved. I know that HMRC are very hot on what can't be claimed as business mileage. Do you know if I can ask HMRC for a "ruling" for my clients particular case?

  • 698 posts
  • # 71551

Hi Carol

Yes i do think they will give you a ruling pertaining to this particular client. Although you may be bounced around a bit until you find the person that will make the decision.

The best place to start would be getting hold of nthe tax office that deal with the P11D's

Kind regards
Stuart

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