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mileage allowance

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ginjill
ginjill Posts: 19 Forumite
I work for the Nhs, due to reduction of tax credits, I needed to increase my hours to keep paying IVA. I was working 26 hours but now working 6 hours extra in a different role where I get mileage allowance. Does anybody know if this is allowed or the 10/50/50 be used? It makes my payslip look more as I didn't realise I was entitled to this and had to add £40 onto my insurance as a business user.. This is not a pay rise..but just had my first review and it went Ok, so need to know if this will change things...it is not a windfall as I travel 70 mile plus a week for job

Thanks for your thoughts,

Jill

Comments

  • if you are doing more miles now, does the mileage allowance cover this or does it factor in wear and tear on your car as well?

    HMRC allow 40p per mile against your tax assessment, I've never come across an employer who pays an allowance without some dialogue about what its intended to cover- do you have to account for your miles as well?

    It would to me seem very unfair if you had to pay it into the IVA if your motoring costs are going up because of course it's not just petrol but more servicing and general repairs as a result.

    In the end it's best to speak to your IP but I'd do that once a few others have replied perhaps and you are a little more clear about the detail you need to present.
    now debt free and determined to maintain good spending habits and build savings
  • FiatFan_2
    FiatFan_2 Posts: 269 Forumite
    hi ginjill, my missus also works for the nhs and receives mileage allowance. On her pay slip is a non-taxable amount down the bottom right of the pay slip that is the value of paid mileage, this is deductible from the total pay before applying the 10/50/50 rule, therefore you won't be penalised for any business miles incurred.

    Can't remember how much she gets per mile as her trust have usually take the mickey and flaunted any advised practises and done their on thing.

    HTH
    Roll on DFD, final payment 1st October 2017 :beer:
  • DCodd
    DCodd Posts: 8,187 Forumite
    Part of the Furniture Combo Breaker

    HMRC allow 40p per mile against your tax assessment
    .
    HMRC tax allowances are 45p per mile upto 10,000 miles and then 25p per mile therafter (NIC allowance is 45p per mile for all busines miles).
    Always get a Qualified opinion - My qualifications are that I am OLD and GRUMPY:p:p
  • luvchocolate
    luvchocolate Posts: 3,387 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Home Insurance Hacker!
    I get 45p per mile for work on my pay slip its down as expenses so wasn't included in my soa for bankrupcy....this maybe different tho
  • DCodd wrote: »
    HMRC tax allowances are 45p per mile upto 10,000 miles and then 25p per mile therafter (NIC allowance is 45p per mile for all busines miles).

    thanks DCodd it was early in the morning when I wrote the post!! ( we are allowed the odd mistake)
    now debt free and determined to maintain good spending habits and build savings
  • ginjill
    ginjill Posts: 19 Forumite
    Thank you for the replies...For my 1600 engine Hyumdai Matrix I get 58p per mile, this includes wear and tear,i started this new part of my job in Nov 2012, but had to pay the £40 business insurance before I could claim back the mileage , so I was a bit concerned that on my payslips it looked like was getting more..
    I have just had my first year review and owe £262...im unsure why apart from obviously 6 hours a week is extra money but my tax credits where reduced ..so the Soa was equal..u couldn't believe it! They want a cheque, im on an IVA and don't have a bank account with that facility!!..I have written to McCambridge Duffy with an offer to pay monthly

    Thanks again for the input

    Jill
  • manzanilla
    manzanilla Posts: 99 Forumite
    I have just had my first year review and owe £262...im unsure why apart from obviously 6 hours a week is extra money but my tax credits where reduced ..so the Soa was equal..u couldn't believe it!
    Then you need to go back to them and ask WHY they think you should be paying more. Don't just assume they have got it right!
    manzanilla
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