HMRC Mileage rules / 10 Mile Rule

jimbotheitbod

Good evening, I'm a long time lurker, first time poster... Where I work have instituted a new expenses policy which states "Travelling to a location for work purposes within a 10-mile radius of your permanent place of work is classed by HMRC as commuting and cannot be reclaimed."

I have done some research on this and still have questions which I wonder if any of you may be able to clear up. the '10 Mile Rule' is only described with examples where people live a long way away from work. I am in the enviable position of living 1.5 Miles away from work, meaning that even something just 1.5 miles on the other side of work would constitute a commute that's 100% longer than my usual... Surely the 10 mile rule doesn't apply when the normal commute is so short as even a short distance 'significantly' changes the normal commute.

It is vague enough to appear to suggest that this will be the case regardless of whether I goto my permanent place of work first, which I understand would, for HMRC's purposes constitute 2 journeys, one of commuting (rightly not claimable) and one of business mileage (claimable).

If I am right in thinking these? Of course I plan to ask my employer how they came to the conclusion that HMRC treat ALL mileage within the 10 mile radius in this way, but if they answer in the negative and they believe it is correct that no mileage within that radius is claimable, am I also right in thinking that I can claim tax relief on the unpaid mileage? of course in that circumstance, the plan will be to not make any trips within the given radius.

Thanks for sticking with me here, and thanks in advance for any and all help you can give

Dazed_and_confused

Have you got a link to where HMRC explain this 10 Mike rule?

jimbotheitbod

Dazed_and_confused wrote: »

Have you got a link to where HMRC explain this 10 Mike rule?

Sort of no... I cant find anywhere that HMRC even describe the rule as such except 4.10 and 4.11 of the 490 guidance on the bottom of page 32 / top of page 33... search for 490_Employee_travel_-_a_tax_and_NICs_guide_for_employers.pdf and you should get a gov assets link.

but it does seem to be a thing, a google shows up pages such as what is the 10 mile rule at autotrip…

Sorry, as a new user I am not allowed to link the exact locations.

Dazed_and_confused

Found something now in one their manuals on gov.uk (Employment Income Manual).

But that seems to relate to the ability to claim tax relief, not sure it would stop your employer paying you for the mileage if they so wished. But it would then potentially be taxable.

jimbotheitbod

Yes, I believe that's HMRCs way of separating 'genuine' mileage... if they get tax relief its payable so if they don't get relief its subject to all sorts of admin unpleasantness... It would also affect my assertion that I could claim tax relief for the non paid expenses, this is the reason for the question, I know with HMRC it doesn't have to make sense... but it doesn't make sense that someone with a round trip commute of 3 miles cant claim mileage for a site a 22 mile round trip away simply because that place is within a 10 mile radius of the permanent place of work... It's also contradictory as most references from HMRC include phrases such as 'broadly the same journey' which clearly something even 3 miles away isn't.
Sorry, I literally got thrown into this this afternoon after spotting the change... have never come across this issue before, but then I have never lived this close to the destination sites...

Dazed_and_confused wrote: »

Found something now in one their manuals on gov.uk (Employment Income Manual).

But that seems to relate to the ability to claim tax relief, not sure it would stop your employer paying you for the mileage if they so wished. But it would then potentially be taxable.