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Private Car Mileage Allowance - Review Needed

124

Comments

  • skoda38
    skoda38 Posts: 53 Forumite
    hi, totally agree that it needs to be raised. i work as a care worker in peoples own homes
    and get nothing towards mileage from my employer just like thousands of other carers in this country
    (check out the job ads, not many will mention anything about mileage. just "must be driver" or "have access to car" )
    im lucky though because i work full time and pay tax that means i can claim back the 40ppm which means i get 8ppm back from hmrc. car does 40mpg so £3.20 refund per gallon
    the unlucky ones are the vast majority of women who work part time and dont earn enough to pay
    tax so cant claim anything back.
    as for speaking to employers they would just show us the door (why do so many people assume employers are reasonable people who listen to problems ?)

    i administer medication, deal with dementia, learning difficulties, liaise with social services, district nurse, deal with illness. death, call paradedics and attend numerous training courses.
    after petrol i would be better off working in mcdonalds.
    although i like healping people too much to leave !!!
    sorry rant over
  • John_Pierpoint
    John_Pierpoint Posts: 8,401 Forumite
    Part of the Furniture 1,000 Posts
    edited 13 March 2011 at 4:03PM
    Are you not "self employed" with your "agent" finding you work?
  • dori2o
    dori2o Posts: 8,150 Forumite
    Part of the Furniture 1,000 Posts
    skoda38 wrote: »
    hi, totally agree that it needs to be raised. i work as a care worker in peoples own homes
    and get nothing towards mileage from my employer just like thousands of other carers in this country
    (check out the job ads, not many will mention anything about mileage. just "must be driver" or "have access to car" )
    im lucky though because i work full time and pay tax that means i can claim back the 40ppm which means i get 8ppm back from hmrc. car does 40mpg so £3.20 refund per gallon
    the unlucky ones are the vast majority of women who work part time and dont earn enough to pay
    tax so cant claim anything back.
    as for speaking to employers they would just show us the door (why do so many people assume employers are reasonable people who listen to problems ?)

    i administer medication, deal with dementia, learning difficulties, liaise with social services, district nurse, deal with illness. death, call paradedics and attend numerous training courses.
    after petrol i would be better off working in mcdonalds.
    although i like healping people too much to leave !!!
    sorry rant over
    Why do so many people believe HMRC should fund their travelling costs. It you believe you are not getting value for money in performing the duites of your employment, then you should discuss that with your employer.

    If the fact you do so many miles means that your salary is non competetive, then simply refuse to do the travelling in your own vehicle and insist that your employer provides one.
    [SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
    [/SIZE]
  • skoda38
    skoda38 Posts: 53 Forumite
    dori2o wrote: »
    Why do so many people believe HMRC should fund their travelling costs. It you believe you are not getting value for money in performing the duites of your employment, then you should discuss that with your employer.

    If the fact you do so many miles means that your salary is non competetive, then simply refuse to do the travelling in your own vehicle and insist that your employer provides one.


    me " i think you should pay my mileage"
    employer " have 40ppm "
    me " thanks "

    or

    me "i think you should pay my mileage"
    employer "troublemaker. get rid asap "
    me "gis a job"
  • dori2o
    dori2o Posts: 8,150 Forumite
    Part of the Furniture 1,000 Posts
    skoda38 wrote: »
    me " i think you should pay my mileage"
    employer " have 40ppm "
    me " thanks "

    or

    me "i think you should pay my mileage"
    employer "troublemaker. get rid asap "
    me "gis a job"
    So why should HMRC fund the costs?
    [SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
    [/SIZE]
  • theoretica
    theoretica Posts: 12,691 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    OP, can you opt back for a company car? You could say your car is getting on in age and you are wondering about not replacing it as you put in little personal use and what are your options.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • i work in the community providing respite care to carers ie taking on the carers duties whilst they have a break. i commute in my own car from home to place of work etc etc then home, and sometimes out again within the same day. our trustees have started banging on about the hmrc's regulation about ordinary commuting, and are trying to class 6 miles from home and 6 miles back home as private expenditure. At the moment we get paid from home then back to our homes. Them doing this will also impact on the travel time we get paid. Our places of work are not guaranteed and are not permanent. we maybe there from as little as 2hrs or maybe overnight. I am roughly gonna lose £130 per month if they have their ways!!! does anyone know a way round pls
  • John_Pierpoint
    John_Pierpoint Posts: 8,401 Forumite
    Part of the Furniture 1,000 Posts
    edited 23 March 2011 at 9:21PM
    Are you self employed? I think not?

    My wife had a job like this, employed by the local authority, theoretically she was based at an office 12 miles away and her mileage allowance was paid on the assumption that she went there and then went out visiting clients.
    The skill was to build the day starting with a client near home, working in a circle and arriving at the last client as near as possible back to our home.

    At least the 40p is now due to go up to 45p thanks to the budget today.
  • jimmo
    jimmo Posts: 2,287 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    i work in the community providing respite care to carers ie taking on the carers duties whilst they have a break. i commute in my own car from home to place of work etc etc then home, and sometimes out again within the same day. our trustees have started banging on about the hmrc's regulation about ordinary commuting, and are trying to class 6 miles from home and 6 miles back home as private expenditure. At the moment we get paid from home then back to our homes. Them doing this will also impact on the travel time we get paid. Our places of work are not guaranteed and are not permanent. we maybe there from as little as 2hrs or maybe overnight. I am roughly gonna lose £130 per month if they have their ways!!! does anyone know a way round pls

    Both John_Pierpoint and your employer seem to be referring to rules which ceased to apply for Tax purposes in 1998.
    I can't show you what the old rules were but this link shows when the new rules came into effect.
    http://www.hmrc.gov.uk/manuals/eimanual/EIM32005.htm
    The old Tax rules were frequently referred to as "The lesser of Rule" or "Triangulation".
    However under the new Tax rules for each journey that you undertake it has to be considered whether that is a normal commuting journey or a business journey.
    If it is a normal commuting journey none of the cost is allowable for Tax purposes. If it is a business journey the whole of the costs are allowable for Tax purposes.
    This link is to one of the early pages on the new rules.
    http://www.hmrc.gov.uk/manuals/eimanual/EIM32055.htm
    Having said that, there are lots of complications in deciding whether a journey is normal commuting or business. The first thing that springs to mind is that you may work in a specified area, say a particular town and you happen to live 6 miles away from that town.
    If that was the case your employer could well have a valid point.
    However it is also important to realise that Tax rules do not dictate what your employer should pay you. They define whether the payments should be taxed or not and whether you can claim Tax relief on any travelling costs not paid by your employer.
    Whilst your employer seems to be trying to use obsolete Tax rules as a reason, or excuse, for cutting back, the amount your employer pays you for travelling is strictly a matter between you and your employer and nothing directly to do with HMRC.
  • gjd0496
    gjd0496 Posts: 25 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    :j First of all I'm very pleased to see that the chancellor seems to have agreed with me and has, at last, increased the allowance to 45p.

    Furthermore, my company have also agreed with my plea and are increasing the allowance from the current 25p to the full (as was) 40p which I'm very pleased with.

    To answer your question, no I'm not self-employed but I do work from home. Most of my journeys are 200+ miles but I take your point, I understand that from a tax point of view, you are supposed to deduct your 'normal' journey to/from work from any claim.
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