Mileage allowance relief for PAYE

00ec25

zygurat789 wrote: »

So after all that:-

that is not how you set it out on the claim form though is it and we still do not know the answer to the either or question so we still cannot say a refund is due especially given the OP has now provided detailed info showing the wife is an NHS doctor under training and therefore covered by the specific rules to which I refer and you seem to have ignored "after all that"

Kepha

This discussion is incredibly helpful, many thanks to all contributors.

I hadn't come across that HMRC webpage despite lots of searching - it seems to clarify the matter. Webpage quoted (links redacted).

Commonly each hospital in the rotation will be operated by a separate NHS Trust. The doctor will be employed for 12 months by each separate NHS Trust responsible for the consecutive hospitals in the rotation. In these cases each hospital will be a permanent workplace because it is the only hospital at which the doctor will work for the duration of that employment. The fact that each employment may be part of a larger programme of training does not change that conclusion. In these cases no deduction can be permitted for the costs of travelling between the doctor’s home and the hospital at which they are employed.

This applies to my wife - she only worked at that hospital for 9 months but I think she fulfils the listed criteria for that hospital being a permanent workplace. So she is not eligible for any tax rebate.

Less commonly the full 5 year training programme will take place under a single contract of employment. Where this is the case each hospital will be a temporary workplace because the doctor will not be working at that hospital for a period in excess of 24 months. In these cases a deduction can be permitted for the cost of travelling between the doctor’s home and the hospital.

This applies to me - so I'm entitled to a rebate for my (fully taxed) reimbursement of public transport costs.

adidas

Thanks all for your useful input.


Wondered if I could pick your brains....still on the note of NHS doctors....If the rotation is part of a 24 month program and the rotation is 12 months, does that mean that the expense is tax deductible?


I am paid excess travel at a rate of 24p a mile. Does this mean that I get tax relief up to 45p a mile (so may be able to claim a tax relief)? Would be grateful if you could advise.

00ec25

adidas wrote: »

Wondered if I could pick your brains....still on the note of NHS doctors....If the rotation is part of a 24 month program and the rotation is 12 months, does that mean that the expense is tax deductible?

I am paid excess travel at a rate of 24p a mile. Does this mean that I get tax relief up to 45p a mile (so may be able to claim a tax relief)? Would be grateful if you could advise.

the key matter is who is your contract of employment with, not how long is the program/rotation
who your employer is determines whether your travel is ordinary commuting to a permanent place of work or is business travel to a temporary place of work

read the link and apply it to your contract since you have not provided that info

adidas

Ouch.....00ec25

Thanks for pointing out the link, had read it already but was having difficulty in interpreting it.

Where it says "Less commonly the full 5 year training programme will take place under a single contract of employment. Where this is the case each hospital will be a temporary workplace because the doctor will not be working at that hospital for a period in excess of 24 months, see EIM32080. In these cases a deduction can be permitted for the cost of travelling between the doctor’s home and the hospital. "

My contract is with one trust but within the trust I must go to two separate hospitals each for 12 months. My base hospital is the one nearest to my home that is not the current hospital I am based in.

It then goes on to talk about a 24month rule that I am unsure if it applies to me. I am guessing that this means it is NOT tax deductible. It is a little confusing as the time frames are a little different and 5 year programs are a bit more rare at more junior levels.

If it is not tax deductible, I am guessing that the 45p/mile thing becomes irrelevant? I am also presuming that this does not need to be mentioned in a tax return?

00ec25

adidas wrote: »

My contract is with one trust but within the trust I must go to two separate hospitals each for 12 months. My base hospital is the one nearest to my home that is not the current hospital I am based in.

tax is all about the details and now you have clarified them we can progress
you have one employer but you have only got 2 hospitals within your 5 year period therefore the 24 month rule applies as to whether the "other" hospital qualifies as a temporary workplace

from the outset Ha (ie that nearest your home) is your permanent/nominated place of employment and so not allowable. Whether Hb is a temporary place depends on the circumstances...

Hb would be allowable if your 5 year pattern was Hax12, Hbx12, Ha x12, Hbx12 and Hax12 . You would therefore know from the outset that you would not exceed 24 months in total at the temporary workplace (Hb) over the course of your contract and so could claim travel to Hb - but not travel to Ha

if your 5 year pattern was not as above then neither Ha nor Hb can be claimed since Ha is your permanent base but there would be a clear expectation from the outset that you would spend 24 months or more at Hb thus precluding it from being a "temporary" place of employment under the 24 month rule

adidas

Thanks for the clarification.

Apologies that I have not been clear.

The total contract is 2 years. I am at hospital a for 12 months in a row then hospital b for 12 months in a row. I currently work at hospital a.

Hospital b is classified as my base as it is closer to my home.

I claim excess mileage on the difference in the travelling between hospital a and b whilst working at hospital a.
i.e. home to hospital b would be regular commuting to a single place of work so can't be claimed as excess mileage. I would not be claiming mileage when at hospital b.

The mileage rate is 24p/mile and the expense is paid via payroll but not taxed.

I think that (the difference in) travelling to hospital a (from the distance to hospital b) is not tax deductible because hospital a is a temporary workplace, and therefore does not need to be declared on a tax return. Is this correct?

I also think that the difference in mileage rates to 45p is probably irrelevant here given as it is not tax deductible. Is this correct? Or should I be submitting a claim for the business miles?

Look forward to your view.

00ec25

adidas wrote: »

The total contract is 2 years. I am at hospital a for 12 months in a row then hospital b for 12 months in a row. I currently work at hospital a.

Hospital b is classified as my base as it is closer to my home.

sorry misunderstood your reference to 24 months, your situation is easy - there are 2 factors in play:

you are a doctor under training currently with a (rotational) contract of employment at hospital B, as such B is your permanent place of employment and costs to get there are all normal commuting. When you move to your next rotation the same will apply - that is the "doctors situation" referred to in the link

However, in your case because Hospital B also staffs hospital A, travel to the the latter falls under the temporary workplace rules which have nothing to do with whether you are a doctor or not as they apply to anyone. For you, A is indeed classed as a temporary place of employment because you meet the test of the 24 month rule, ie: although you work at A full time for 12 months and don't work at B during that period, B remains your permanent base and you know in advance that your total time at A will be for less than 24 months during the life of your employment contract.

Irrespective of the reality that A represents 50% of your physical location in this rotation, A is a "temporary" workplace and so you are eligible for business travel claims to it. Now note that whilst the NHS only pays you excess mileage, in fact you can actually claim tax relief on the whole distance from your home to hospital A @45ppm minus the amount paid @24ppm. (using 45ppm on assumption you do less than 10,000 miles in total per year)

The excess mileage rule was abolished decades ago by HMRC for tax relief purposes, but retained by the NHS for obvious cost saving reasons. A business journey for tax purposes starts from your home, not from your employers premises, and as such the NHS is underpaying you since it is using only 24ppm and not paying you for the full distance, you are therefore entitled to claim tax relief on the value of the underpayment

adidas

Thanks for the clarification. I have kept all the records of my travel for hospital purposes. I'll have to have a look through to see if it's 10,000 or less.

If it crosses the 10k threshold then I will claim a lesser amount of tax relief at 25p/mile for those miles over 10k.