Employer paying 20pm mile telling staff HMRC make it up to 45p

elsien

[Deleted User] said:

On a similar note, anyone know the rules for field based workers? i.e. no office to go to?
Is it a HMRC rule that you can't claim from home? And that you can only claim from 1st stop of the day, then can't claim for journey home after last stop?

Doesn't work out too well if its 30 miles to customer1, 10 miles to customer2, then 40miles home. You can only claim £2 for an 80 mile journey.

If you are on an office based contract but start and finish from home (as many of my colleagues did from choice precovid as our office was too small to fit people in and we all do visits throughout the day so people preferred to travel from home rather than go to the office for the sake of it)  then the mileage from home to the office is subtracted from the distance travelled during the day as that counts as your commute which you don't get paid for. 
There is also something about where you start to claim from, depending on where you are based, I did look it up with HMRC but can't remember all the details now.
 For me it means that as I have a home working contract, live in county A but am contracted to work across area B.  I can't claim mileage from home, my claims start on the boundary area of B. 

Grumpy_chap

[Deleted User] said:

Grumpy_chap said:

[Deleted User] said:

This is a big company that tell staff not to worry that they only get 20p a mile because HMRC will make it up to 45pm a mile... 

If it's a "big company" paying what is a low rate, is that because there is some other contribution to the costs of running a car elsewhere in the overall package, for example car allowance?  If so, the 20 ppm would be quite generous as well above the fuel-only cost.

No. Its not the amount that I have a problem - you can take or leave that. But to tell people they can claim the full amount back up to 45p is just wrong.

You are correct, of course.  If paid 20p/mile, only the difference in tax allowance at the individual's marginal rate can be claimed up to the 45p (or 25p after 10k miles).

Is it really the company saying that, or some junior line manager who simply doesn't know or care?

unholyangel

[Deleted User] said:

On a similar note, anyone know the rules for field based workers? i.e. no office to go to?
Is it a HMRC rule that you can't claim from home? And that you can only claim from 1st stop of the day, then can't claim for journey home after last stop?

Doesn't work out too well if its 30 miles to customer1, 10 miles to customer2, then 40miles home. You can only claim £2 for an 80 mile journey.

Depends on your contract of employment and whether any of them are classed as a permanent workplace. For example, a geographical area can be a permanent workplace.
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32190

maxsteam

[Deleted User] said:

Completely nuts... This is a big company that tell staff not to worry that they only get 20p a mile because HMRC will make it up to 45pm a mile... They are adamant.

Yes. It's nonsense. Or maybe a misunderstanding. The 45p per mile is mentioned here:
https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax
It's the maximum amount that the employer can pay you for using your own car for business trips. Anything over 45p will be taxed.

Rather than just getting angry and shouting at the person who tells you this, I, personally, would be inclined to play along and politely ask how to claim the difference and when it will be paid. I expect that you will be told that it's done through the PAYE system but I would still politely suggest to whoever is spreading the story that HMRC don't seem to be making up the difference for you.

zagfles

[Deleted User] said:

On a similar note, anyone know the rules for field based workers? i.e. no office to go to?
Is it a HMRC rule that you can't claim from home? And that you can only claim from 1st stop of the day, then can't claim for journey home after last stop?

Doesn't work out too well if its 30 miles to customer1, 10 miles to customer2, then 40miles home. You can only claim £2 for an 80 mile journey.

No, HMRC allow you claim the whole lot, except perhaps if as above if your "workplace" is defined as a geographic area (but think that's not usual). Although like with the 45p/mile, it doesn't mean your employer will pay it. They may have different rules, but if they do you can claim tax relief on the difference.

Even if you're based at an office as your normal workplace, if you go elsewhere direct from home, then HMRC still classify the whole of the journey from home and back as a business journey and allow you to claim the lot. Some companies will tell you to deduct commuting mileage, but that's their rules, not HMRC rules. Although they often lie (or are clueless) and will say it's HMRC rules. There are a few exceptions like if the other place is next door to your office so it's basically the same as your normal commute.

Jeremy535897

zagfles said:

[Deleted User] said:

On a similar note, anyone know the rules for field based workers? i.e. no office to go to?
Is it a HMRC rule that you can't claim from home? And that you can only claim from 1st stop of the day, then can't claim for journey home after last stop?

Doesn't work out too well if its 30 miles to customer1, 10 miles to customer2, then 40miles home. You can only claim £2 for an 80 mile journey.

No, HMRC allow you claim the whole lot, except perhaps if as above if your "workplace" is defined as a geographic area (but think that's not usual). Although like with the 45p/mile, it doesn't mean your employer will pay it. They may have different rules, but if they do you can claim tax relief on the difference.

Even if you're based at an office as your normal workplace, if you go elsewhere direct from home, then HMRC still classify the whole of the journey from home and back as a business journey and allow you to claim the lot. Some companies will tell you to deduct commuting mileage, but that's their rules, not HMRC rules. Although they often lie (or are clueless) and will say it's HMRC rules. There are a few exceptions like if the other place is next door to your office so it's basically the same as your normal commute.

See https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32080