NHS mileage fuel allowance

swindiff

Wife has started as a community support worker for the NHS so uses her vehicle for work. Checking online NHS mileage allowance seems to be 56p per mile for the first 3500 miles but she is only getting 45p. Before she raises this at work can anyone who uses their own vehicle working for the NHS advise on what allowance they get. Cheers.

Terry_Towelling

I think HMRC will allow you to claim only 45p per mile tax-free. Beyond that you probably pay 20% tax (or worse). Given that the extra 11p equates pretty accurately to 20% tax, there is probably little point in having it paid to you in the first place.

If I've got that wrong, someone please shout.

daveyjp

You pay tax on payment above 45p, so at 56p its 20% (or possible higher rate) on 11p.

swindiff

Ah ok. That makes sense. Thanks both. Confusion comes where it is shown as an untaxed payment on her payslip. Just shows the mileage and 45p per mile.

swindiff

So reading that again should it be 20% on the 11p or 20% on the full 56p?

Terry_Towelling

swindiff wrote: »

So reading that again should it be 20% on the 11p or 20% on the full 56p?

Good question! Normally you'd expect to be taxed on amounts in excess of allowances but I have a suspicion that the tax is on the whole amount because it is no longer considered an allowance when it is above 45p, but just extra income.

I had the same issue in a previous job where we were told about the higher amount but to avoid any tax (and extra admin) we were advised to stick to 45p.

Perhaps raise the question in the taxation part of the forum and see if you get a more complete answer.

Jami74

swindiff wrote: »

Wife has started as a community support worker for the NHS so uses her vehicle for work. Checking online NHS mileage allowance seems to be 56p per mile for the first 3500 miles but she is only getting 45p. Before she raises this at work can anyone who uses their own vehicle working for the NHS advise on what allowance they get. Cheers.

I've always got 45p/mile (from 2017 until now) and it's always been untaxed. I doubt I've exceeded 35000 miles in any one year but I wouldn't know unless I went back through my claims or payslips.

swindiff

3500 not 35000 lol

swindiff

Thanks for help, will ask for confirmation in the tax forum. Seems a bit odd if you are taxed on the whole amount above 45p. If that was the case if the allowance was 50p you would actually get less than if it was 45p

Terry_Towelling

swindiff wrote: »

Thanks for help, will ask for confirmation in the tax forum. Seems a bit odd if you are taxed on the whole amount above 45p. If that was the case if the allowance was 50p you would actually get less than if it was 45p

The only explanation I can offer is that any payment above 45p it is not seen by HMRC as an allowable expense but as part of your normal taxable income. Hope the tax forum can give you a better answer.