Business Mileage

Rufty1

I recently started working for a new company. I just put in a claim for business mileage for travel to (a) the airport (b) a suppliers site. Both for going to and from home.
HR told me I have to deduct the mileage from my home to work and back.
I am sure she is wrong, so many reasons, (including business insurance)
Is she???

Thanks for the advice.

Wizzbang

Yes, they are absolutely right because they are entitled to expect that you would drive to your workplace every day (and home again). Any normal employee (one who doesn't need to drive for the business) would be responsible for getting themselves to and from work every day.

Your standard insurance covers you for commuting and then your business add-on covers you for driving for the business i.e. between your employers base and the customer's base. HTH

https://www.gov.uk/tax-relief-for-employees/business-mileage-fuel-costs

trp

Wizzbang wrote: »

Yes, they are absolutely right because they are entitled to expect that you would drive to your workplace every day (and home again). Any normal employee (one who doesn't need to drive for the business) would be responsible for getting themselves to and from work every day.

Your standard insurance covers you for commuting and then your business add-on covers you for driving for the business i.e. between your employers base and the customer's base. HTH

The HMRC handbook states
"
Where the employee does not stop at the permanent workplace, or any stop is incidental
to the business journey, all of the journey is business travel."

if the OP did not travel to their regular place of work as part of the journey then the entire journey should be classed as for business.

elsien

For my last two jobs, the mileage from home to the workplace has been deducted. I think it's fairly standard practice. It's generally known as triangulation.

emg

Yep same here, can claim the total for the day minus home to base mileage (even if I dont go into base). In theory the mileage rate already includes overheads like maintenance and business insurance in addition to fuel costs.

Wizzbang

trp wrote: »

The HMRC handbook states
"
Where the employee does not stop at the permanent workplace, or any stop is incidental
to the business journey, all of the journey is business travel."

if the OP did not travel to their regular place of work as part of the journey then the entire journey should be classed as for business.

Well whatever it states, it's not standard practice. I can tell you the local Government and NHS always take off whatever mileage going into your regular place of work is.

I recall somewhere from the depths of my mind that it helps you out long-term, because if you go over a certain level of mileage (easily done if you travel a lot for business) the rate of reimbursement decreases or you get taxed on it, or something like that. It's in your interest financially to keep your business mileage low.

Targettsright

No, none of that is necessarily true - it depends entirely upon:
a) Your contractual working arrangements - are you classed as a home worker or office? If Office then they may have a point, if not then your home IS classed as your work location and you can claim from your door to your destination (unless disputed by your contract)
b) If you're in a car scheme or just claiming mileage. If just mileage then you can claim a tax rebate from HMRC for the mileage done at 45p a mile (last time I looked) if your company gives you 10p a mile then you're entitled to claim 35p as a tax rebate from HMRC.
I believe that is correct I'm sure more regular business travelers can correct me if wrong.

lisa110rry

45p per mile up to 10,000 miles, then 25p per mile.

The quote above, by the way, about doing "meaningful work" is from HMRC publication 490 Employee Travel, clause 3.46 on page 28.

Edited to add: why not just claim the shortfall on self assessment? Make a spreadsheet of all your business mileage, subtract the sum from your P11D and claim the rest?

Targettsright

Also .... if they're stating that you have to travel to your work destination first (well, kind of implying it by deducting that amount from you) - then make sure all mileage you claim includes that distance too.
Sort of the same as the above post says about claiming the shortfall, but you'll actually get more. So if it's 10 miles North to the office and you've done 5 miles South then surely by their definition you'd have had to do 25 miles!
If anyone thinks that's fraudulent then the alternative is to actually always drive to the office first, If you start work at 9 they'll soon get fed up with having to pay the extra plus you not being able to leave to go places until 9! - The alternative being that they pay you from your door with no deductions for you to be at your destination at 9 .... their choice if they want to be pernickety about it.

Rufty1

trp wrote: »

The HMRC handbook states
"
Where the employee does not stop at the permanent workplace, or any stop is incidental
to the business journey, all of the journey is business travel."

if the OP did not travel to their regular place of work as part of the journey then the entire journey should be classed as for business.

OP?? Please could you point me to which bit of the handbook you are referring to please, I'd like to read more, Thanks

hurrah

The Tax Forum is here http://forums.moneysavingexpert.com/forumdisplay.php?f=22
questions often come up re business mileage.