NHS mileage fuel allowance and tax

swindiff

I asked a question in the budgeting forum about NHS mileage allowance,

it was pointed out that it may be more appropriate in this forum. So here goes;

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.

It has been suggested that anything over 45p gets taxed. But does that mean she should be being taxed on 11p per mile, as the figures point to her being taxed on the whole 56p per mile?

forgotmyname

Have you deducted the distance from your home to the normal place of work?

From what i gather... If her normal journey is 10 miles to work, but tomorrow she goes to a client 20 miles away they deduct the 10 miles she would normally have travelled.

swindiff

Yes, her payslip shows the mileage claimed for and the pence per mile as 45p. It actually shows it as untaxed on her payslip.

polymaff

We really need to see all of the data on the payslip.

swindiff

I'll have to dig it out when I get home this evening.

forgotmyname

45p + 20% = 54p Already taxed?

swindiff

So its supposed to be 56p per mile.
I have been told on the other thread that the maximum you can get tax free is 45p per mile.
56p - 20% is indeed 45p, however it would seem strange to tax the whole amount or someone who got an allowance of 50p per mile would actually receive less than someone who got an allowance of 45p per mile.

45p non taxed = 45p
50p taxed at 20% = 40p

I would have thought it should be 45p tax free, then the extra 11p per mile taxed at 20%. That would be 53.8p per mile??

polymaff

swindiff wrote: »

So its supposed to be 56p per mile.
I have been told on the other thread that the maximum you can get tax free is 45p per mile.
56p - 20% is indeed 45p, however it would seem strange to tax the whole amount or someone who got an allowance of 50p per mile would actually receive less than someone who got an allowance of 45p per mile.

45p non taxed = 45p
50p taxed at 20% = 40p

I would have thought it should be 45p tax free, then the extra 11p per mile taxed at 20%. That would be 53.8p per mile??

Which is why I'd like to see the payslip.

I'm wondering if the employer has followed HMRC's advice to:

"add anything above the ‘approved amount’ to the employee’s pay, and deduct and pay tax as normal"

So you see the approved amount based on 45p/mile as a non-taxable payment - and the 11p/mile is buried in the taxable pay.

swindiff

Ah that is possible. Like I say will have to check this evening. Cheers.

polymaff

swindiff wrote: »

Ah that is possible. Like I say will have to check this evening. Cheers.

There may be an entry for the 11p/mile on the payslip. If not then, if possible, compare two payslips where only the mileage claimed was different, and see if the taxable is different.

Terry_Towelling

Swindiff (from your other thread) I have just found some more info on the HMRC website which suggests that it is indeed only the amount in excess of the 45p that is added to your taxable pay. So, as suggested above, the extra 11p may indeed be paid but is buried in the normal taxable pay.