do companies have to pay mileage

xxjojo1986xx

Ok where do I start
2 questions

1. My partners is a security guard and he current contract where we live has just ended and he is being asked to cover another base which is 1hrs drive away but 45.5 miles what is the normal mileage allowance is he entitled to any?. He is only on min wage and if we have to pay for petrol then it would mean he would be working for below the min wage. We were spending £40 pw on petrol working 6 days a week when he covered the base in our own town last time he covered this other base we spent £90 pw on petrol for 5 days. Hope I have explained this ok.

2. How would he or what would he have to do to become a self employd security guar if he was to find his own contract?

Thanks

scheming_gypsy

Employers don't pay mileage to cover you getting to work. if his new contract is 27 miles away then that is his place of work and he pays it himself and it doesn't affect his hourly rate

an9i77

Has he been offered a new contract at another base? In which case the person replying was right they do not have to provide any mileage. Some employers do pay mileage for a limited period of time when someone is transferred to another base (eg as an alternative to redundancy) but this is not a legal obligation. it's usually only for the difference between the original base and the new base anyway. Your partner has to decide whether to accept the new contractual terms and conditions or not. If he's already accepted, he should have thought about this before agreeing.

LittleVoice

xxjojo1986xx wrote: »

Ok where do I start
2. How would he or what would he have to do to become a self employd security guar if he was to find his own contract?

For security work I think he would need to operate through his own limited liability company (or an umbrella company).

He should look at what insurance he would need.

Hammyman

He wouldn't need to operate under either a Ltd company or an umbrella company however operating as a ltd company reduces exposure to costs.

Hammyman

xxjojo1986xx wrote: »

My partners is a security guard and he current contract where we live has just ended and he is being asked to cover another base which is 1hrs drive away but 45.5 miles what is the normal mileage allowance is he entitled to any?. He is only on min wage and if we have to pay for petrol then it would mean he would be working for below the min wage.]

He is not entitled to be paid mileage. The fact he has to pay it has no bearing on his wage in regards to minimum wage.

However he can claim tax relief as it is a temporary place of work as long as it is not expected to last 24 months or more. He would have to claim via a P87 at the end of the tax year working out the claim at 45p per mile for the first 10,000 miles then 25p per mile after.

So if he did 10,000 miles, he would claim for £4500 tax relief and get a tax refund of £1100 (the income tax you would pay on £4500 at the standard 20% rate) if he's paid that much income tax or more. Also for tax credits, it is counted as a deduction from income so again, taking the £4500 figure, if he earned £20,000 and claimed the £4500 then for tax credits his income is £15,500.

LittleVoice

Hammyman wrote: »

He wouldn't need to operate under either a Ltd company or an umbrella company however operating as a ltd company reduces exposure to costs.

So you are saying that someone who would be providing services when and where the "client" wants, is not providing his own surveillance equipment, has no monetary risk in the business, and presumably cannot send a replacement is going to be self-employed.

xxjojo1986xx

thanks guys

Mistral001

There has been several posts recently about people on minimum wage or near minimum wage being asked to go self-employed or as in the case of the OP, considering to go self-employed with their present employer.

It seems that many employees see this as a way of getting more money because they can claim tax relief on expenses like travel etc. However, sometimes it would appear that employer's hype up the advantages of going self-employed. This perhaps has something to do with the fact that it can save them quite a lot of money with regard to Employer's National Insurance, payroll admin. and even as a means of effectively paying less than minimum.

Hammyman

LittleVoice wrote: »

So you are saying that someone who would be providing services when and where the "client" wants, is not providing his own surveillance equipment, has no monetary risk in the business, and presumably cannot send a replacement is going to be self-employed.

Welcome to IT contracting.