Car mileage allowance

Any

jimmo wrote: »

No it isn't.
See this example.
http://www.hmrc.gov.uk/manuals/eimanual/EIM32231.htm

This is surprise for me!
What I said was what we were told by HMRC in person!

irn_bru

I work in an office but currently I'm based at a building site to supervise a project. I drive straight to site from home but my employers have said I can only claim from the office. I thought this was in line with HMRC rules but perhaps I should challenge this?

Incidentally, I don't normally drive to the office as I cycle, which has made it even more annoying!

TM1976

It's important to bear in mind that your employer's rules may not be exactly in line with HMR&C rules. You're employer can pay you on any basis they choose as deterimined by your terms and conditions.

If HMR&C rules say you could claim more tax free you can claim tax relief on the difference.

If HMR&C rules say you are entitled to less then you should be taxed on the difference. When employers say their scheme is "in line with HMR&C rules" they generally mean that you won't have to pay any additional tax on what you have been paid in expenses.

liam8282

Lurchio wrote: »

Hi, I have a slightly different question but still related to Mileage Allowances.

I live in a small town in North Yorkshire and travel into work in Leeds 4 days a week. However, for one day a week I work out at a clients premises and my boss pays me the 40p mileage allowance.

However, he only pays me for the mileage from the office in Leeds to the client's premises, which is 12 miles each way (24 miles per day I work there).

The thing is, from my home to the client's premises is 32 miles each way, or 64 miles per day.

So, am I allowed to put a personal claim in for the difference of 40 miles per day?

I know that home to work is classed as private mileage so you're not allowed to claim for that... hence why my boss says I can only claim the mileage from the office to the client's premises.

But, on the days I work at the client's, I don't usually go into the office, so surely the whole trip is business use and I can claim for the whole 64 miles?

Either way my boss won't pay me the difference, but if I'm right can I claim for tax relief on the difference myself?

Any help would be appreciated!

As you said your boss won't pay you the difference I assume you have already talked to him about this.

If you went back to your boss and tried to discuss this, your boss could quite easily say that you have to call into the office each day before and after going to the clients. Or you could argue this point to them if it is to your advantage.

Overall I think it would be a lot of hassle and cause problems, I would just accept that you are getting paid for the business miles you are travelling.

Also if it is a small employer, they will probably have to bear the cost of this business mileage themselves, or add it onto the clients bill, so it may be for this reason that your boss can only pay you mileage from your normal workplace.

Lurchio

jimmo wrote: »

No it isn't.
See this example.

Thanks for that!

That's exactly what I thought the rules were, because I'm effectively going to a temporary work place which classifies the whole trip as business mileage.

It's nice to have an official example though!

p.s. As a new user I had to remove the link you posted!

Lurchio

irn_bru wrote: »

I work in an office but currently I'm based at a building site to supervise a project. I drive straight to site from home but my employers have said I can only claim from the office. I thought this was in line with HMRC rules but perhaps I should challenge this?

Incidentally, I don't normally drive to the office as I cycle, which has made it even more annoying!

This is the same as me, but it may well be that it is simply your company's rules.

However, like me you should be able to claim tax relief on the difference between what your employer has paid you and what you are entitled to... assuming you have accurate enough records to work it out.

Lurchio

TM1976 wrote: »

It's important to bear in mind that your employer's rules may not be exactly in line with HMR&C rules. You're employer can pay you on any basis they choose as deterimined by your terms and conditions.

If HMR&C rules say you could claim more tax free you can claim tax relief on the difference.

If HMR&C rules say you are entitled to less then you should be taxed on the difference. When employers say their scheme is "in line with HMR&C rules" they generally mean that you won't have to pay any additional tax on what you have been paid in expenses.

What he/she said!

Lurchio

liam8282 wrote: »

As you said your boss won't pay you the difference I assume you have already talked to him about this.

If you went back to your boss and tried to discuss this, your boss could quite easily say that you have to call into the office each day before and after going to the clients. Or you could argue this point to them if it is to your advantage.

Overall I think it would be a lot of hassle and cause problems, I would just accept that you are getting paid for the business miles you are travelling.

Also if it is a small employer, they will probably have to bear the cost of this business mileage themselves, or add it onto the clients bill, so it may be for this reason that your boss can only pay you mileage from your normal workplace.

I've not talked to him as such, but the first time I went to the clients directly from home I tried to claim the mileage for the whole trip and he pulled me up on it saying I was only entitled to the difference.

As he's usually very good on these sort of things I took his word on it, but it's always been at the back of my mind that I was right.

Anyway, I'm not bothered about trying to get any extra money out of the firm I work for, because I don't want to rock the boat, but now I know that I am entitled to the whole journey, I have accurate enough records to work out how many miles I'm entitled to compared to what I've been paid for and will claim tax relief on the difference.

By my calculations, it's probably worth in the region of a £250 tax refund to me... so thanks everyone!

wbzuk

Hi, I realise its been a while since this topic was created but have a similar question of my own regarding mileage.

I was originally based in London (on the London £4k allowance) but was moved last year to several locations in the southern region (including London), with my £4k allowance still intact, however I drive daily and cover about four locations (including my original base in London). Would I be entitled to claim mileage to all sites? Two sites under 51 miles and one site is about 65 miles. You could argue that I still get the town allowance although the wear and tear on the car still takes its toll with the amount of miles I do (which is around 25,000 miles per year). I have requested to be based at home to lose the London Allowance so that I can claim the full mileage but the company seem happy to let me continue to be on the london allowance, I only claim the additional miles when doing the 65 mile journey (14 miles each way). Am I entitled to claim for the full distance? Surely where I work and live shouldn't make that much of a difference. Also other people in the team who live closer to the base would claim full mileage/travel to other locations.

Is there any clear rule on this one?

Any help would be much appreciated.