Staff Mileage Allowance

Bean_Counter

If they are using their own vehicles for work use, you have a duty of care to your employees to make sure that they have a safe working environment i.e. their car.

Hence you need to make sure that the cars are insured for business use, that they have valid MOT and road tax and that they have a valid driving licence as appropriate and have been adequately maintained as a bare minimum. You also need to keep a record that you have done all this such as photocopies of the appropriate documents.

Aquamania

assj wrote: »

:cool:Hi All
We are taking on a few staff to work at events.
They will use their own vehicles to get to and from the events...

assj wrote: »

... they will be driving all of the equipment and themselves.

So you are expecting these new burger flipping recruits to provide their own vehicle suitably licenced, taxed, insured and equipped for towing your burger/catering trailer to these events? Good luck with that ... :cool:

Mistral001

As others have said if you pay any more than 45p per mile the extra will be taxed.


Have you thought about providing your own transport as I believe that that is what many event organisers do. Also perhaps you should think about from which location you recruit .

[Deleted User]

Thanks for the reply. We don't just have burger vans lol. This is not related to the burger van business. Thanks.

dandruff_2

hi


we employ field engineers so have same prob.


What we do is don't pay them for the first half hour to work, or the first half hour for journey home ( reason being if they worked at fixed address they would have to commute unpaid there and back), after that we pay the driver his hourly rate, any passengers a reduced rate of roughly minus 10% of there hourly rate (theyre usually sleeping). Mileage is 45p max for the 1st 10000 miles and 25 p there after, I believe class NI is only applicable if there total mileage payment goes over £8500 per annum, but not sure. We pay a fixed 25 p per mile for all mileage, they use their own vehicles and can claim back the difference (between the 25p and 45p) form the tax man. I don't believe there is a minimum, but 25p seems fair, the average cost per mile for fuel I worked out as approx. 13p per mile, so unless theyre all driving Bentleys the remainder (12p per mile) goes to wear and tear on the vehicle. Also the driver can claim back upto 50 p per mile from tax man if he carries other employees. That, and what beancounter said


hope that helps, sorry it went on!:)

Savvy_Sue

Either I'm confused, or you are, or possibly both ...

dandruff wrote: »

Mileage is 45p max for the 1st 10000 miles and 25 p there after,

But from the sound of it, you don't pay 45p per mile, ever? because you say ...

dandruff wrote: »

We pay a fixed 25 p per mile for all mileage,

dandruff wrote: »

they use their own vehicles and can claim back the difference (between the 25p and 45p) form the tax man.

No no no no NO!

If an employer pays UP TO 45p per mile for the first 10000 miles, then HMRC do not regard this as taxable. If an employer pays MORE THAN 45p per mile, then anything over 45p per mile would normally be taxable (some employers have negotiated a higher mileage rate).

It is a common misconception that if an employer pays LESS THAN 45p per mile, then the employee can claim the difference back from HMRC. THIS IS NOT TRUE! The employee can reclaim the TAX they have paid on the difference between whatever the employer pays, and 45p per mile.

So, assuming a basic rate tax payer, doing 100 miles and being reimbursed 25p per mile, they cannot reclaim 100 miles x 20p = £20, but 20% of that, which is I think £4.

And the employee can only reclaim this if they are actually paying tax, which is what makes care assistants being paid so little they don't pay tax so unfair.

Mistral001

Savy Sue makes a good point. I think "claiming back the difference from the tax man" is so commonly said, with regard to this subject, it has almost become an urban myth The employee may actually claim back the difference but it is their business whether they commit a fraud or not I would suggest. However, perhaps if the employer tells the employee that they can claim back the difference then it could be the employer's business.

Aquamania

I think people use the term 'claim it back from the taxman' as urban shorthand for claiming tax relief for such expense.

Mistral001

Aquamania wrote: »

I think people use the term 'claim it back from the taxman' as urban shorthand for claiming tax relief for such expense.

I was specifically taking about mileage and the notion that if you get paid 25p per mile you can claim back the difference between that and 45p per mile from HMRC which of course you can not do (not legally anyway).

Savvy_Sue

You may be right, Aquamania, but on the Cutting Tax board there seem to be a number of questions which suggest that some people (including employers) do genuinely believe that if your employer only pays 25p per mile, HMRC will pay you 20p per mile.

Apologies for not quoting you and Mistral (who I think agrees with me) but my ability to multiquote appears to have vanished ...