Voluntary car service question

Does anyone know how Voluntary Car Service drivers (for Hospital Visits) stand as regards tax etc.. I have been told by several car drivers that you do not need to declare any money earned as they are only paid 'mileage' money and no other expenses..

I am considering this if I have to take early retirement but want to know where I would stand as regards JSA also as I could make myself available for job interviews etc , by just volunteering part-time....
#6 of the SKI-ers Club :j

"All that is necessary for evil to triumph is for good men to do nothing" Edmund Burke

Comments

  • donnalove
    donnalove Posts: 574 Forumite
    hi i can answer this honestly as i am a voluntry driver for nhs mental services.

    basically it is the same as buissness millage you can do the first 10,000 miles at 40p then the rate reduces to 25p for anything after, or you can be paid a lower rate ie 35p then you could do 14000 miles or 32p you could do 20000 miles different hospitals have different rates but we are paid the standard 40p and 25p i will explain the best i can.

    so if you were to do 15,000 miles at 40p for tax purposes the first 10,000 miles you would not pay tax. the 5,000 miles tax man says you should be paid 25p but you are being paid 40p so the difference 40-25=15p would be taxable, the tax on 15p is 3p
    so tax would be 3x5000=150 you would have to pay £150 tax, on the extra 5000 miles.
    (the taxman classes the extra 15p as profit so therefore becomes taxable)

    or you could do the 15000 doing 10000 at 40p then 5000 at 25p if you dont want the hassle.

    another option so you can do 15000 and still claim the 40p for the whole 15000(or more as we can do) is to base it on your whole years driving, this involves keeping recipts for anything to do with your car eg servicing, parts,mot,insurance etc then you work it out on proportion of vol driving to personal driving

    example:

    i drive 15000 miles for voluntry and 5000 of my own
    15000+5000=20000
    for tax purposes the tax man allows you 40p for you personal milage so

    20000x40=£8000
    you then work out your proportion of vol to personal

    15000 is 3/4 of 20000
    you then take 3/4 of 8000 =6000

    6000 is what you are paid for doing 15000 miles thus no tax to pay
    if you do it this way you have to keep all recipts for 2 years incase the taxman gets intouch with you.
    you don't have to register with inland revenue or tell them you are doing it but if you do it the way you pay tax then you will have to ask for a self assesment form at the end of the year.

    you can do voluntry driving on jsa you must tell them you are doing it and still attend any interviews they request. it won't affect your pay.

    we are in uproar about this as voluntry is voluntry but tax man thinks you make a profit on your driving if you go over the 10000 miles at 40p.

    if you are unsure then please private message me as i have all info
    you could also look on inland revenue internet site(sorry dont have link)

    all information is in leaflet IR122


    some of our drivers do over 20000 miles year and for now have gone down to the 25p after the first 10000 as they don't want the hassle.
  • tanith
    tanith Posts: 8,091 Forumite
    First Anniversary Combo Breaker
    Hi Donna , sounds very complicated when u put it like that but I think I get your gist..... someone told me that London pays higher mileage than the Counties but I guess I would be paying Congestion Charge if I worked for London... might be better to choose one of the bordering counties... do they pay the congestion charge for you ? If they wanted you to do a London trip..... I have a Vauxhall Zafira which I think would be perfect for the work as it has high seat position making it easier for not so mobile people to get in and out of and plenty of room in the boot for luggage frames or the occasional wheel chair..... do you actually manage to maintain and run your car on the money earnt? I would hope to make sufficient that it doesn't actually cost me anything to do the work...
    #6 of the SKI-ers Club :j

    "All that is necessary for evil to triumph is for good men to do nothing" Edmund Burke
  • donnalove
    donnalove Posts: 574 Forumite
    hi ,
    yes it does pay enough to run and maintain my car i average 1500-1800 miles a month except when school holidays are around and i have to look after children.

    we put a claim sheet in every month, i don't know if all voluntry organisations do the same.
    not sure how the congestion charge would work but i guess they would either give you the money then you hand them the recipt or whether you would pay it then hand reciept when you got back and them reimburse you. we also get £1.75 reimburst if we buy something to eat whilst out.

    we have worked it out that for the milage we do you are making a loss if you claim the 25p after the first 10000.i claim 40p and use the year system i have all my recipts.

    hope you find something, i find it very rewarding and it helps me as i suffer mild deppression and it takes my mind of it and gives me something to do.

    regards
    donna xxx
  • tanith
    tanith Posts: 8,091 Forumite
    First Anniversary Combo Breaker
    I already work in London in Patient Transport for the LAS.. but am currently under review for a medical retirement.. I want to carry on but have galloping Osteo/Arthritis and already have one Total Hip Replacement and am waiting on the other in the next year or so. I think it would be perfect for me working part-time ..
    Would you know if I were to claim JSA would they be expecting me to manage to get a job even with my mobility limitations.? Sounds like its the perfect job for you, are you able to easily cut down on the days worked when it suits you to do less....?
    #6 of the SKI-ers Club :j

    "All that is necessary for evil to triumph is for good men to do nothing" Edmund Burke
  • donnalove
    donnalove Posts: 574 Forumite
    if you sign onto jsa then yes they would expect you to look for work, just a thought would you be better claiming incapacity benifit instead?

    doing voluntry work means just that it is voluntry and if you don't feel like doing any then you just tell them there are no reprocautions, we normally have regulars but if you cant make it in they rearrange or send taxis, i normally feel guilty if i have to say i can't do it but they keep telling me not to feel guilty and they appriciate it when i do it.

    also worth remembering it is not a job, you are not paid as an employee you just claim expenses.
  • tanith
    tanith Posts: 8,091 Forumite
    First Anniversary Combo Breaker
    Just one more question I promise.. do you work through a charity or directly for the hospital?. Most of the drivers I know actually work for the Ambulance Service itself and they are always complaining about this and that....they seem to have mega problems getting there expenses correct.....
    #6 of the SKI-ers Club :j

    "All that is necessary for evil to triumph is for good men to do nothing" Edmund Burke
  • i do the voluntry for the nhs mental health service, we do have some problems with them paying expenses on time though
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235.1K Work, Benefits & Business
  • 607.8K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards