Work mileage - can this be claimed?

hypothetical

I was wondering whether someone could clarify for me whether I could be claiming tax relief on my work mileage or not? A colleague has recently told me that she does claim on mileage for work in all instances and that it adds up to a hefty amount.

This is the situation: I work for an emergency service and have my main base at BigTown. I also work shifts as relief in other locations at RuralTown, PortTown, RemoteTown and MidwayTown.

As BigTown is my normal base my employer does not pay a mileage allowance to get there. I am paid untaxed mileage at standard rates dependent on CC of vehicle when I work at the other bases. The mileage that I am allowed to claim is the distance from home to the base, so long as it is equal or less than the distance from BigTown to the base.

If I choose to work overtime I can claim mileage as above, but am paid it on a taxed mileage basis.

So far fair enough. However my colleague has informed me that she logs all her mileage to work, even to our normal base of BigTown and claims for it all against her tax (she does self-assessment through an accountant at a private company she also works for).

Based on my reading of the HMRC guidelines I wouldn't expect to be able to claim anything additionally, as all the places that I commute to are set places of work and I already have an allowance of tax relief as my normal claimed mileage is untaxed.

So is she wrong? Or could/ should I also be claiming my home to duty mileage for BigTown?

All advice much appreciated. Apologies if the above isn't clear.

Many thanks,

hypothetical

real1314

It depends. (see below)

For most people you could claim for the journeys to everywhere except big-town. What you'd get is the tax on the difference between the HMRC rate of 45p per mile and the rate your employer pays.

So, if the employer pays 25p per mile you'd get the tax back on the extra 20p, ie at 20% you'd get 4p per mile back from HMRC.

If your colleague is claiming for travel to the normal big-town office, she's making an incorrect claim. And her accountant should know this.

The depends bit....

Some people are classed as area/dual site/geographically based employees. Afaik they cannot claim for these journeys. They are rare though. :cool:

hypothetical

I've just checked a payslip and I get paid my untaxed mileage allowance at 47.3p per mile, so from that account there isn't anything additional to be claimed. It's a bit above the 45p you mentioned for my 1.3 Car and is paid at higher rates for larger engined cars owned by my colleagues.

I don't believe that I'm classified as a geographically based employee although BigTown, RuralTown, PortTown, MidwayTown and RemoteTown are each quite far apart. It'd take two hours to get from RuralTown to RemoteTown driving legally. My reading from the HMRC website is that as all my places of work are clearly defined and constant they would all be non-claimable, outside of my employers allowances.

Thanks for the information. I'll make sure to discuss it with my colleague next time I see her...

00ec25

hypothetical wrote: »

I've just checked a payslip and I get paid my untaxed mileage allowance at 47.3p per mile, so from that account there isn't anything additional to be claimed. It's a bit above the 45p you mentioned for my 1.3 Car and is paid at higher rates for larger engined cars owned by my colleagues

the 45p per mile is a flat rate and does not depend on engine size

as your employer pays above the HMRC rate I additionally assume that they notify HMRC of the 2.3p excess amount you (and colleague) have been paid via the annual P11D declaration that they must make.

Consequently, rather than being able to claim further tax relief, you actually OWE tax on the excess payment you have received of 2.3p @20% (or 40%).

Have you checked whether your tax code has been reduced, if not, it should have been....

InsideInsurance

hypothetical wrote: »

she does self-assessment through an accountant at a private company she also works for

Would need to understand this more and her contractual relationship with the "emergency service" that you both work at.

One possibility is that she is a contractor using her Ltd and so not an employee of the emergency service. If this were the case then she would basically have her perm work location as her company's address and whilst the contract with the emergency service company is going to be under two years then it would be a temporary place of work and so mileage claimable.

Of cause if she is a straight employee of the emergency service then she shouldnt be claiming for her mileage as has already been said.

Savvy_Sue

00ec25 wrote: »

as your employer pays above the HMRC rate I additionally assume that they notify HMRC of the 2.3p excess amount you (and colleague) have been paid via the annual P11D declaration that they must make.

Consequently, rather than being able to claim further tax relief, you actually OWE tax on the excess payment you have received of 2.3p @20% (or 40%).

Have you checked whether your tax code has been reduced, if not, it should have been....

I believe that some employers have negotiated a higher rate than 45p per mile with HMRC, I think the NHS or part of it was mentioned, so it's possible that there is no further tax liability. Can't remember who said this - anyone?