Employer changing mileage payments to leave people out of pocket, any recourse

spiro

Lum wrote: »

Currently I'm pushing for making me officially home based, in which case I may ask for a business use only car. These have their fuel reimbursed in full still.

In which case you'll have to pay to run a 2nd car, surely that is less cost effective.

comeandgo

You will be able to claim 45p - 15p x 10,000miles then I think its 20p - 15p x all other miles you have done over 10,000 from HMRC in an end of year tax rebate. I am paid the same as you for mileage and I used to get between £500 and £800 back in June after I put in my claim. The revenue have now upped my tax code to over 1100L to cover the diffference and at the end of the tax year we play catch up - if I've not done as many business miles as last year then I'm usually due them money but if done more they are due me. I take it your employer also covers your Lease costs?

comeandgo

I have just read one of your post where you say you dont do many business miles so you should get the 45p-15p x how many business miles a year you do.

HappyMJ

comeandgo wrote: »

You will be able to claim 45p - 15p x 10,000miles then I think its 20p - 15p x all other miles you have done over 10,000 from HMRC in an end of year tax rebate. I am paid the same as you for mileage and I used to get between £500 and £800 back in June after I put in my claim. The revenue have now upped my tax code to over 1100L to cover the diffference and at the end of the tax year we play catch up - if I've not done as many business miles as last year then I'm usually due them money but if done more they are due me. I take it your employer also covers your Lease costs?

That's only if you use your own car.

Lum

spiro wrote: »

In which case you'll have to pay to run a 2nd car, surely that is less cost effective.

I already do run a personal car as well, so I'm fine with this.

sunshinetours

comeandgo wrote: »

You will be able to claim 45p - 15p x 10,000miles then I think its 20p - 15p x all other miles you have done over 10,000 from HMRC in an end of year tax rebate. I am paid the same as you for mileage and I used to get between £500 and £800 back in June after I put in my claim. The revenue have now upped my tax code to over 1100L to cover the diffference and at the end of the tax year we play catch up - if I've not done as many business miles as last year then I'm usually due them money but if done more they are due me. I take it your employer also covers your Lease costs?

OP has a company car not his own car. The rates you are quoting are for use of own car on business and the fact that you can claim tax relief on difference between company paid rate and approved mileage rate from HMRC. If you are running a company paid for car you cannot claim these rates - hopefully you don't have a huge liability due to HMRC?

sunshinetours

Lum

As the new scheme proposed is based on a well tried and industry standard (and reasonably fair) system I doubt if there would be any recourse as to any significant changes to your employment terms.

Being cynical I would suggest the people shouting the loudest about this are likely to be the ones filling up their OH's car every few weeks....?! As a cynical near-middle aged accountant who certainly doesn't drive a Micra (!) I would certainly confirm that busienss mileag is much easier to check and control than checking business mileage and total fuel spent

Lum

I'm sure that some may be doing this, but I know for a fact that I am not. My GF's car runs on LPG and my personal car requires super unleaded.

I also know that my boss really does do high business mileage and it's costing him a lot more than 12p a mile.

The ones shouting loudest are those with 1598cc Focuses, which are one of the worst for artificially inflated MPG figures. These are, of course, the lower status lower paid employees who are least able to subsidise their business mileage.

WickedWolfie

HMRC are clamping down on many kinds of tax avoidance. I suspect your company may well have been advised, either by HMRC or their accountants, to move to what many others have quite rightly suggested is well-established industry best practice. HMRC allow use of something similar to the previous method your employer was using, but having looked at HMRC's leaflet (attached) I suspect that by focussing solely on fuel costs and ignoring the non-business proportion of other costs your employer was non-compliant, something which would have severe implications for them. HMRC make it clear that payments should cover only business-related expenses (ie you are liable for the personal use element of insurance, servicing etc etc). Given how open to abuse the latter system is I wouldn't be too surprised to see its use for milage withdrawn completely at some point in the not too distant future.

http://www.hmrc.gov.uk/bst/advice-team-events/motor-expenses-handout.pdf

Notmyrealname

Lum wrote: »

The trip computer on my Mondeo reports 41mpg, however we all know how optimistic they are.

My MK4 2.0 TDCi 140 reports pretty much in excess of 55MPG all the time until the wife drives it. I spend most of my time driving down back roads. OTTOMH I think the average speed is around 40MPH on the trip computer.