NHS change of base mileage payment questions

djpix99

Hi,

I am currently going through consultation regarding a change of place of work with the NHS, as part of this they will pay my excess mileage to and from the new place of work at the reserve rate of 28p per mile. I will then have payee tax(20%) and national insurance(12%) deducted from this on my payslip, which I have confirmed is correct.

1. As I am receiving less that the HMRC rate of 45p per mile, can I claim tax relief on the difference between 45p and 28p?

2. Does anyone know if the reserve rate is supposed to cover fuel and car maintenance costs?

3. I have a car on pcp where i will have to pay 3.4p per mile for any excess miles outside my contract, which this change of base will clock up many, should I be reimbursed separately for this expense?

Thanks in advance for any replies

BoGoF

Sounds like this is a change of permanent place of employment and therefore ordinary commuting - the fact your employer us taxing the payment would confirm this.

Therefore

1) you are not entitled to claim the business mileage rate of 45 ppm.

2) sounds like it is a rate to reflect the additional travel costs

3) not your employers problem

Keep_pedalling

As this appears to be a payment to cover your travel to a new permanent place of work you can’t claim anything from HMRC as it is classed as commute rather than business mileage.

The fact that your car is on PCP is not really your employers or HMRCs problem so you will just have to suck that up or look at making other arrangements car wise.

djpix99

Thanks both for the informative answers, obviously not what i wanted to hear, but at least I know.