Calculating Mileage? - Home / Office / Client / Home etc Help!

Savvy_Sue

Premier wrote: »

Of course the tax man has his own rules over what are deemed allowable expenses, irrespective of what your company actually pays.

Yes, I remember a couple of years ago one of my colleagues having a moan that the 40p per mile hadn't been increased even though petrol was going up and up and up, and asking why we weren't paying more. I explained that there was no way we were going to pay more until HMRC raised their rates, because if we did it before that happened, then we'd all be liable to pay tax on anything above 40p per mile, and I'd be in the realm of P11Ds at the end of each tax year, which was NOT a place I wanted to be!

Still waiting for HMRC to raise the rate, petrol still going up and up and up ...

But Premier speaks good sense. If you want to change something, always best to discuss and negotiate the changes rather than impose something which leads to disgruntled workers unwilling to show any flexibility!

RedShep

Hi there,

Thank you for all the replies. The decision has been made to keep the rate at 40p per mile.

I do have one final question. How should the mileage be calculated? I seem to remember seeing something about triangulation between home, office and the location. Currently the 40p is being paid on the distance between home and the location. I am not sure this is right if say someone went from Southampton to Birmingham when the office is in Reading?

Thanks,

Mary

Pennywise

RedShep wrote: »

I do have one final question. How should the mileage be calculated? I seem to remember seeing something about triangulation between home, office and the location. Currently the 40p is being paid on the distance between home and the location. I am not sure this is right if say someone went from Southampton to Birmingham when the office is in Reading?

Yes, that's right - all clearly laid out in the HMRC employee travel guide 490

http://www.hmrc.gov.uk/helpsheets/490.pdf

Look at paragraph 3.39 on page 24

It would only not be right if he stopped off at Reading to perform "substantive" work before carrying on to Birmingham.

RedShep

Pennywise wrote: »

Yes, that's right - all clearly laid out in the HMRC employee travel guide 490

Look at paragraph 3.39 on page 24

It would only not be right if he stopped off at Reading to perform "substantive" work before carrying on to Birmingham.

Hi Pennywise,

Thank you for the link to that document - very useful A quick question - how is the mileage worked when someone is travelling from home in the South to somewhere in the North, but they do not go directly past the office? Is it the full journey minus the mileage they would have had to do for the home to office route? Is there anywhere that HMRC explain this? Paragraph 3.39 seems to assume they go right past the office.

Thank you,

Mary

RedShep

RedShep wrote: »

Hi Pennywise,

Thank you for the link to that document - very useful A quick question - how is the mileage worked when someone is travelling from home in the South to somewhere in the North, but they do not go directly past the office? Is it the full journey minus the mileage they would have had to do for the home to office route? Is there anywhere that HMRC explain this? Paragraph 3.39 seems to assume they go right past the office.

Thank you,

Mary

Hi there,

Any chance someone could help with the question above please?

Thank you,

Mary

Horace

The way I would do it, although I am not sure if it is the right way, and that is to calculate mileage from the office to the client - travelling from home to the workplace isn't normally claimed.

If someone was travelling from the south to the north then there are cheaper means to travel than using the car.