Mileage allowance.

patman99

As I am a PAYE employee (albeit through an Agency), can I claim-back my mileage from the Taxman ?.

It occurred to me the other day that I do close-on 200 miles a week traveling to/from work. At a claim-back of 48p a mile I could be quids in.

catwoman150

Is your employment at one site or do you travel around doing your job at different sites during your working hours? You can not claim from your house to your place of work, but you can claim mileage if you travel during your working day to other sites.

ceh209

^ What catwoman said.


Plus, the rate is 45p per mile, not 48p.

And you don't get the 45p, you get tax relief on that at whatever your rate is, so 20/40/50% of that amount.

patman99

Thanks for such a quick answer.

I was trying to fathom-out how the guy who now works with me used to use an umbrella company when seconded with another dept. He reckoned he only paid £17 a week Tax.

Pont

As you are paid 48ppm, and HMRC rate is 45ppm you wouldn't be able to claim any tax relief back as you are over the HMRC rate by 3ppm. My understanding is that this 3ppm is subject to the usual deductions so, on your figures for 200 miles etc:-
200 miles X 48ppm = £96
200 miles X 45ppm = £90
In theory you should be paying tax etc on the extra £6 per week - oops!

paulus

My reading is that patman99 claims nothing at present, but could be quids in.

Ordinarily agency workers are contracted to work at a single site throughout the duration of their engagement. If this is the case, the travel to and from that site will be normal commuting so not tax deductible.

Under an umbrella arrangement the worker is employed by the umbrella on an overarching contract and is assigned, possibly with various agencies, to a series of workplaces. As these are all temporary and a single assignment isnt for all or neraly all of the employment then tax relief may be available.

However, overarching contracts has recently come under challenge per the recent tax tribunal of Reed Group v HMRC.

Mileage Relief where available is 45p, but where an umbrella works an allowance for meals is also available, hence your mate will pay less tax.