Business Usage and BIK

Scrapit

zagfles wrote: »

You're completely wrong. Common sense says no such thing. how you get into your normal workplace is down to you and no tax relief is available, but if you're going somewhere else that's fully claimable. You might save on the commute, but you might not, eg you might have a season ticket on the train, you might share a lift etc.

That's why HMRC allow you to claim business journeys in full, without having to deduct an imaginary journey not made.

Nah, it's defo correct. And when you work from home you still have to pay:rotfl:;)

Nebulous2

My previous employer paid for mileage away from their office, but not towards it. If I had to go to a venue in the opposite direction I was paid in full from my home. If I was going in the direction of their office, and often substantially past it I had to deduct my normal commute mileage. There was a formula for calculating it. One of the reasons for this was to save on time. Some people, unhappy at not getting paid mileage, were going to the office first thing, regardless of direction. From then they would be paid both mileage and time.

AdrianC

It's very simple.
Monday - You have a normal day in the office, with a 50 mile commute.
Tuesday - You are required to be on site. You have a 100 mile round trip. You do not do your normal 50 mile commute.
Wednesday - You have a normal day in the office, with a 50 mile commute.

How many extra miles do you need reimbursing for, for Tuesday's site visit?

zagfles

DUTR wrote: »

As mentioned earlier, that has been the way it has always been from my employer, just this week I had to commute to another office 40 miles away, I more or less have to pass my regular office (even if I was travelling in the opposite direction to an alternative office), I deduct my commute mileage after all, I would have had to travel to work anyways.

If I had to get the train, I have to commute to the station, so I don't claim for the bus fare on top of the rail ticket.

Even if HMRC didn't set the rule HR has , so for me the few quid isn't worth the agro of the consequences it may bring.

Companies don't have to have the same rules as HMRC, but if they are different then if the company is more stingy than HMRC, the employee can claim tax relief on the difference, and if they're more generous the employee gets taxed on the difference.

Same with mileage rates, if the company don't pay the full allowed HMRC rate, the employee can claim tax relief on the difference.

My employer will pay commuting costs if we're called out at the weekend and have to go into the office, HMRC don't allow this as expenses so we have to claim on a "taxable expenses" form where they gross up the expense and pay it through payroll so it gets fully taxed.

zagfles

Scrapit wrote: »

Nah, it's defo correct. And when you work from home you still have to pay:rotfl:;)

What next, if you claim a meal when you're away on business, you have to deduct the cost of the food you would have eaten at home :rotfl:

DUTR

zagfles wrote: »

Companies don't have to have the same rules as HMRC, but if they are different then if the company is more stingy than HMRC, the employee can claim tax relief on the difference, and if they're more generous the employee gets taxed on the difference.

Same with mileage rates, if the company don't pay the full allowed HMRC rate, the employee can claim tax relief on the difference.

My employer will pay commuting costs if we're called out at the weekend and have to go into the office, HMRC don't allow this as expenses so we have to claim on a "taxable expenses" form where they gross up the expense and pay it through payroll so it gets fully taxed.

Why stingy?
Where I'm at there are 2 rates normal and exceptional, I don't know who gets the exceptional rate (never asked(maybe it is for those that have a car allowance)) .
The standard rate works as does deducting the commute, trying it on with expenses can lead to a misconduct charge.
For the longer distance that the OP opened with, then hire cars or public transport are available.

zagfles

DUTR wrote: »

Why stingy?

"..more stingy". It was relative!

Where I'm at there are 2 rates normal and exceptional, I don't know who gets the exceptional rate (never asked(maybe it is for those that have a car allowance)) .
The standard rate works as does deducting the commute, trying it on with expenses can lead to a misconduct charge.

Err...yes, nobody was suggesting the OP fiddles his expenses. The point was whoever told the OP it's HMRC rules that commute mileage has to be deducted from a business journey direct from home was talking drivel. It might be company policy, just as paying a lower mileage rate than HMRC allow might be.

But it's important people are aware of the HMRC rules so they can claim tax relief on the difference (or in some cases have to pay tax on a taxable payment). I get a tax rebate of a few hundred a year because my company only pay petrol rates for mileage, as I have an allowance, which is taxed, which is supposed to cover everything else.

DUTR

zagfles wrote: »

"..more stingy". It was relative!Err...yes, nobody was suggesting the OP fiddles his expenses. The point was whoever told the OP it's HMRC rules that commute mileage has to be deducted from a business journey direct from home was talking drivel. It might be company policy, just as paying a lower mileage rate than HMRC allow might be.

But it's important people are aware of the HMRC rules so they can claim tax relief on the difference (or in some cases have to pay tax on a taxable payment). I get a tax rebate of a few hundred a year because my company only pay petrol rates for mileage, as I have an allowance, which is taxed, which is supposed to cover everything else.

Ok the opening post read"I am told that when driving your own vehicle or a company car for work purposes, the ordinary commute must be deducted from the mileage claim even no journey to the ordinary place of work is made.

In the scenario that my usual commute to my permanent place of work is a round trip of 50 miles. If i drove for business purposes, from my home 100 mile round trip, i would have to deduct 50 miles from my claim otherwise HMRC see me being reimbursed for a commute that i would've had to take had i not needed to make the work journey as a benefit in kind.

In over 20 years of driving for work purposes i have never heard of this. I can find nothing in the HMRC guidance to suggest this either.

Has anyone else ever heard of this and perhaps point me in the direction of the official guidance? "

So yes whoever told the OP so, may be misinformed, I am surprised though that in over 20 years of driving for his company this is the 1st time he has encountered this scenario.
I guess that if his employment includes a union membership then he can seek further clarification.
For me the risk of claiming the commute miles doesn't outweigh the pro's of playing it safe.