Using private car for business and claiming expenses

sky_rat

I've recently had to use my own private car for business travel which I've been claiming expenses for (at 45p per mile).

I had an issue with the last expense claim I made because my manager told me I had to deduct the milage I would usually do when commuting to the office from the mileage I was claiming on the expense form.

He said that travel expenses can only be claimed on any additional mileage to my existing commute to the office.

In this instance, I was claiming 150 miles of travel (75 miles each way) to visit a customer. I went to the customer directly from home because the office is in the opposite direction and 50 miles away.

But my manager told me that I could only claim for 50 miles (the additional 25 miles each way) because my commute to the office would have been 100 miles (50 miles each way). Is this correct or do I have the right to claim for the full mileage of 150 miles ?

Ive had a long commute for the last 7 years which is very expensive and very stressful so its always been a huge worry for me. I've already had to replace one car because the engine failed due to the high mileage. I replaced it with a 10 year old car which at the time had 69k miles on the clock (it now has 93k miles and I've only had it 16 months).

Being a single parent and living on my own, most of my income goes on bills so I cant afford to buy a newer car nor keep replacing it and the high maintenance costs. In fact I try to do most of the repair work myself to save the extortionate prices that garages charge (I recently had to change the front suspension spring when it snapped).

Out of curiosity, I don't suppose I can claim any kind of tax relief for my high milage commute ?

PS. I do have business travel on my insurance so I am covered. The company does not have a pool car for employees to use.

sangie595

The manager is correct - it is normal to deduct the normal commute from the total. There is no tax relief on commute mileage. It is considered that the journey to and from work is your own responsibility.

ohreally

The company does not have a pool car for employees to use.

There is little incentive for them to provide transport if individuals are prepared to supply their own car and then run it into the ground.

What happens when your car dies and you don't have the means to replace it?

sky_rat

ohreally wrote: »

There is little incentive for them to provide transport if individuals are prepared to supply their own car and then run it into the ground.

What happens when your car dies and you don't have the means to replace it?

Thats been the huge worry I have had for the last 7 years and I've made it very clear to my manager how much of a worry it is, tho he doesnt give a s**t. In his opinion, you choose where you work and live. I live where I do so I can be close to my daughter but there is no work in my field in the area and Ive been looking for the last 7 years and still looking.

When the engine in my last car broke, the car was a write off because it was only worth £1000 and needed a new engine costing £3000.

I couldnt afford to replace the car so I had to work from home for the first week (which my manager and HR was not happy about) and then I had to borrow my Dads car for 6 months until I could get a replacement, but even the replacement was a 10 year old car with 69k miles (now 93k miles) so it won't last much longer with the high mileage commute I do.

When my existing car dies I have no idea what I will do - hence the stress and worry on top of an already stressful commute which takes at least 1 hour each way depending on traffic (my record is 5 hours to commute 50 miles due to an accident !). I can't even use the train because it doubles the journey time and requires 3 changes (I have to go in the wrong direction to then come back on myself) and even then I would still have to get to/from the stations when at home and work.

This is why using my private car for business travel on top of my high mileage commute is additional stress and worry for me. It took me a year to convince my existing employer to allow me to work from home 2 days a week (which I requested during the interview and was told it should be no problem). They only agreed because I got in contact with ACAS regarding flexible working and threatened to take legal action. And even then I have to be flexible so if they ask me to be in the office (like they have this week) then I cannot work from home.

Do I have a right to refuse using my car for business travel because of my worries ?

jobbingmusician

sky_rat wrote: »

I've recently had to use my own private car for business travel which I've been claiming expenses for (at 45p per mile).

I had an issue with the last expense claim I made because my manager told me I had to deduct the milage I would usually do when commuting to the office from the mileage I was claiming on the expense form.

He said that travel expenses can only be claimed on any additional mileage to my existing commute to the office.

In this instance, I was claiming 150 miles of travel (75 miles each way) to visit a customer. I went to the customer directly from home because the office is in the opposite direction and 50 miles away.

But my manager told me that I could only claim for 50 miles (the additional 25 miles each way) because my commute to the office would have been 100 miles (50 miles each way). Is this correct or do I have the right to claim for the full mileage of 150 miles ?

Ive had a long commute for the last 7 years which is very expensive and very stressful so its always been a huge worry for me. I've already had to replace one car because the engine failed due to the high mileage. I replaced it with a 10 year old car which at the time had 69k miles on the clock (it now has 93k miles and I've only had it 16 months).

Being a single parent and living on my own, most of my income goes on bills so I cant afford to buy a newer car nor keep replacing it and the high maintenance costs. In fact I try to do most of the repair work myself to save the extortionate prices that garages charge (I recently had to change the front suspension spring when it snapped).

Out of curiosity, I don't suppose I can claim any kind of tax relief for my high milage commute ?

PS. I do have business travel on my insurance so I am covered. The company does not have a pool car for employees to use.

sky_rat wrote: »

Thats been the huge worry I have had for the last 7 years and I've made it very clear to my manager how much of a worry it is, tho he doesnt give a s**t. In his opinion, you choose where you work and live. I live where I do so I can be close to my daughter but there is no work in my field in the area and Ive been looking for the last 7 years and still looking.

When the engine in my last car broke, the car was a write off because it was only worth £1000 and needed a new engine costing £3000.

I couldnt afford to replace the car so I had to work from home for the first week (which my manager and HR was not happy about) and then I had to borrow my Dads car for 6 months until I could get a replacement, but even the replacement was a 10 year old car with 69k miles (now 93k miles) so it won't last much longer with the high mileage commute I do.

When my existing car dies I have no idea what I will do - hence the stress and worry on top of an already stressful commute which takes at least 1 hour each way depending on traffic (my record is 5 hours to commute 50 miles due to an accident !). I can't even use the train because it doubles the journey time and requires 3 changes (I have to go in the wrong direction to then come back on myself) and even then I would still have to get to/from the stations when at home and work.

This is why using my private car for business travel on top of my high mileage commute is additional stress and worry for me. It took me a year to convince my existing employer to allow me to work from home 2 days a week (which I requested during the interview and was told it should be no problem). They only agreed because I got in contact with ACAS regarding flexible working and threatened to take legal action. And even then I have to be flexible so if they ask me to be in the office (like they have this week) then I cannot work from home.

Do I have a right to refuse using my car for business travel because of my worries ?

I doubt it, quite frankly. It actually depends on what your contract says (and how long you have been in the job. Don't forget, your employer can get rid of you for any reason in the first 2 years.)

It is not your employer's business where you live, and it does sound as if they have already given you a concession by allowing you to work from home 2 days a week. It is your choice to live so far from the office, after all. They are also correct about the HMRC rules for reimbusing you for travel. There is no point in getting annoyed with the employer - these are HMRC rules.

Just to give context, I have been considering applying for a job today where the joining instructions make it abundantly clear that use of my car is required to attend work, since I can work in any one of 3 remote offices. The person spec makes it clear that the ability to travel between offices in an efficient and timely manner is a vital part of the job requirements.

If you really could not afford to replace the car, could you consider a motorcycle? Could you ask your employer for a loan to help you buy a new car, when the time comes? Could you consider replacing your car at one of the times of year when manufacturers try to boost sales by giving interest free credit agreements?

I do feel that you are stressing for no real reason. You are getting fair expenses paid, you knew where the office was when you took the job, you have NO travel expenses for 2 days a week, and you have time to save for a new vehicle - or some other options, including the ones above.

Savvy_Sue

jobbingmusician wrote: »

or some other options, including the ones above.

I wondered if it would be possible to drive to one of the intermediate points on the train journey and then commute to cut down the mileage.

Dazed_and_confused

sky_rat

I don't believe there are any HMRC rules which would have prevented your employer from paying you for the full 150 miles, that would be there choice, however it is perfectly normal for the employer to have limited the claim to the mileage over and above your normal commute. I would be surprised if they hadn't done this to be honest.

And your employer paying 45p/mile is fairly generous, there are plenty of threads on here where people only get 20/25p per mile.

You could however consider making a tax relief claim from HMRC. If you look on gov.uk for HMRC booklet 490 and have a look for your situation I think you may be able to claim tax relief on the whole journey providing that it was to a temporary workplace.

You could possible fill in form P87 at the end of the tax year and get a tax refund. If you only had this journey it would be something like

Mileage travelled = 150
Mileage claim = 150 x 45p (HMRC rate) = £67.50
Less reimbursed by employer £22.50
Tax relief due on £45 (67.50 - 22.50)

Depending on your personal tax position you could get a refund anywhere from £0 (don't actually pay tax) to £20.25 (very high earner). Most would get £9 (£45 x 20%).

Tiddlywinks

I'm going to be blunt because you are bringing too much personal baggage and emotion into the issue and someone needs to just lay out the facts of a working life.

You are employed to do a job which presumably requires occasional work at other sites.

You CHOSE your home address based on domestic factors - nothing to do with the company. It's your responsibility to manage where you live and how you maintain reliable attendance.

YOUR domestic and financial circumstances mean you are driving an older car - it's not the company's responsibility to give you transport for commuting to your workplace.

Your role requires occasional visits to other sites - unless your contract provides otherwise then how you get there is dictated by costs (time, tickets, fuel etc). Again, the company expects you to do your job (travel to other sites included).

The cost of getting to your usual place of work is YOUR 'normal liability' - why would the company be expected to cover this for you on those days when you are working elsewhere?

Finally, you have written lots of emotive stuff about your 'domestics'... that's just not the company's responsibility. Life happens and you are expected to deal with it.

I know this all sounds harsh but that is business. They are employing you to fulfill a contracted role - your personal circumstances to them are just 'noise'.

MataNui

I can sort of see where they are coming from since you cant claim for commuting.

BUT

Since the office is 50 miles in the other direction you would be perfectly entitled to drive to the office first then claim the full distance from the office to the remote site and back to the office. So from what i understand of what you have said an additional 100 miles.

Clearly you would be doing 100 miles you dont need to and dont want to do but it would work out that on balance your original claim is correct. So you have only claimed 75 each way (rather than the 125 each way you are entitled to). I think thats taking the !!!! for them to try to reduce that further. Tell them you will come into the office first next time.

Andy_L

The tax-man doesn't require you to deduct your normal home-work mileage from a claim, ie they wouldn't tax you on that mileage as a benefit. However your employer is free to not pay it if they choose to do so, as said it depends what the contract says

FBaby

To bring in more bad news, does your insurance cover you for the business mileage? Even if you go to another site as commute, many insurance policy will consider this business mileage.

I've had to change my insurance cover and that resulted in a £50 extra premium, that despite the fact that I am not actually doing more mileage, just once a week going to another office (of the same distance!).