Mileage Expenses

marybelle01

Gary_Moore wrote: »

Sorry, It works out as £227(ish) that he gets in mileage allowance.

I am also an idiot and realised it is 101 miles ONE-WAY per day, So 1010 miles per week (I hope I got that right haha)

It's just crazy that £110 a week is being spent and I am already being taxed on it as I can't claim it as an expense because obviously he can't provide a receipt.

Are you also paying a fair contribution towards his insurance, road tax, wear and tear, MOT and maintenance costs, plus something on account for the replacement vehicle he will need to take you to work in when this one is not longer fit to do so??? If not, it is only fair that you should. Mileage allowance is not a petrol allowance - it is an allowance contributing to ALL the costs of running a vehicle. Which, since you wouldn't realise it, not having a driving licence or being a driver of a vehicle, are significantly more than petrol in the tank.

Obviously, if you don't find the arrangement fair or suitable, then you may try to renegotiate it. Just as he may tell you to take the bus....

Gas_Powered_Toothbrush

You can't claim anything, there is no tax relief available to passengers.

Also, you mention 'getting to work' - are these journeys your commute? If so, they're not business journeys and your workmate should be paying tax on all the mileage payments he receives from the employer.

marybelle01

Gas_Powered_Toothbrush wrote: »

You can't claim anything, there is no tax relief available to passengers.

Also, you mention 'getting to work' - are these journeys your commute? If so, they're not business journeys and your workmate should be paying tax on all the mileage payments he receives from the employer.

Not necessarily. The OP mentioned that the driver gets this as a tax allowance (it isn't "avoiding tax"!!). There are plenty of circumstances where this is a permissible expense - contract and agency workers can claim tax relief against the travel from their home to a place of work for up to two years at any single place of work. If the home is the base of work, travel from there to another starting point can be claimed.

When doing agency work I have regularly claimed tax relief against my home to work travel - it is perfectly legal.

mountainofdebt

Can you clarify something?

You travel together for 1010 miles.

Are you saying he gets 45p for every one of these miles?

But he can only claim this for the first 10,000 miles (or 2 months lol) and then it should drop to 25p per mile- so I'm guessing he pays tax on the extra 20p mile.

Seems an odd set up - employers don't usually pay mileage to come to work.

mountainofdebt

Gas_Powered_Toothbrush wrote: »

You can't claim anything, there is no tax relief available to passengers.
.

I thought you could claim an extra 5p per passenger?

CKhalvashi

mountainofdebt wrote: »

I thought you could claim an extra 5p per passenger?

This is the tax law as I understand it, too.

My car is 'leased' to my company for 45p/25p a mile plus 5p per passenger. There is no expense to pay on this, either for the company (as it's a legitimate expense), or for me, as it's done at approved rate.

I own my vehicle outright.

CK

Gas_Powered_Toothbrush

mountainofdebt wrote: »

I thought you could claim an extra 5p per passenger?

The driver can. The passengers themselves can claim nothing.

System

It doesn't really make sense. The 45p per mile is paid for business related travel (i.e. not for commuting). So if you are not commuting then why are you paying half? The company should come to an arrangement with your colleague if he feels the 45p per mile doesn't cover it but you should not be paying anything.

Gary_Moore_2

Thank you all very kindly for your responses.

He could refuse to take me and then I would pay more in train fare etc etc so I know it is perfectly fair and above board. Just got a little worried that's all.

It is driving to a site we are working on at the moment and everything is legal as this is sorted by an umbrella company.

In a nutshell; It is all above board, I am now happy with the arrangement and I apologise if I wasted some of your time.

But thank you all so so much for your insights and responses. And generally trying to help. Have a good weekend people!! :beer:

Scrootum

How does he claim 45p per mile plus claims back the tax on the actual fuel costs? Sounds dodgy to me.