Tax refund for use of own car

ForestPCT

My daughter has been employed for the past year working for a company running Covid testing sites around the UK.  Initially she worked at a single site about 10 miles from her home.  After a few months she was asked to switch to supporting mobile testing sites and has, since then, had to travel (using her own car) to multiple locations, most of which are further from her home than the original fixed location.  She has not been issued with any change of contract to reflect this change of working pattern. Whilst the employer pays her for her travel time to reach these locations, she receives no payment to cover her travel costs (fuel, insurance, wear and tear etc). 

Can anyone offer guidance as to whether she should be able to claim mileage tax relief (at 45p/mile) for any of the mileage she incurs as a result of driving to these sites given she is not re-imbursed by her employer?  I would think there are hundreds of other individuals in a similar situation around the country.     

Dazed_and_C0nfused

Can anyone offer guidance as to whether she should be able to claim mileage tax relief (at 45p/mile)

The only way to get 45p/mile is for her employer to pay it.

If tax relief is due it is relief on 45p/mile.  Which can range from 0p to, in extreme circumstances, 27p/mile

How much tax due she pay during the 2020:21 tax year?

If this travel was necessary for her to perform the duties of her employment then why didn't the employee pay something?

pramsay13

Yes she can claim tax relief on mileage for work.

Grumpy_chap

She can claim the tax relief (usually 20% or 40%) against the rate of 45 pence/mile (first 10k miles) then 25 pence/mile after that.

If she is a basic rate tax payer and does 100 miles and within the 45 pence rate, then the claim would be £45 * 0.2 = £9 less tax paid.

ForestPCT

I should have been clearer.  I understand she can only hope to get tax relief (in her case at 20%) against the 45p/mile claimed.  My query is more about the chances of HMRC accepting the principle of the mileage incurred being eligible for tax relief.  I agree that one would expect the employer to pay for her incurred mileage costs but they don't so will HMRC see it as a valid claim?  The job doesn't have a specific location that can be defined as a "place of work" from which she could then work out additional miles travelled when she goes to locations that are further away.  However, she is having to incur the cost of travelling to these locations (which can be some distance away - often 50 to 60 miles) so there is a reasonable sum involved.   

Grumpy_chap

ForestPCT said:

My query is more about the chances of HMRC accepting the principle of the mileage incurred being eligible for tax relief.  I agree that one would expect the employer to pay for her incurred mileage costs but they don't so will HMRC see it as a valid claim? 

The job doesn't have a specific location that can be defined as a "place of work" from which she could then work out additional miles travelled when she goes to locations that are further away.  However, she is having to incur the cost of travelling to these locations (which can be some distance away - often 50 to 60 miles) so there is a reasonable sum involved.   

Whether or not the employer pays mileage at any rate (or none) is irrelevant to whether the tax exemption is available, so no reason that HMRC will not accept the claim on that basis.

What is more complex is working out how much the claim can be:

1. Does she have a contract stating a normal place of work?  Or stating WFH?  If so, travel to that normal place is not allowed, but travel to a different place is likely allowed door-to-door (there are some exceptions such as if the "different place" is very near to the "normal place").
2. Does she have a contract stating a work area?  If the work area is, say, Northumberland, then travel to the County is commuting but travel within the County may be claimable.

Reading the fact there is no location stated, then a full door-to-door claim seems possible.

Jeremy535897

My post on your previous thread:

"EIM 32190 has, I think, to be treated with caution. It is not law. After all, every contract of employment effectively has a deemed term in it that you work somewhere on planet Earth. On that basis, no travel expenses would ever be allowed.

EIM 32191 goes into a bit more detail:
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32191

The examples focus more on cases where somebody regularly goes into a few offices (the employer's premises) rather than one single office."

The added information you now give suggests that her contract specifies no area covered (the county of Blankshire was how one poster put it). This is helpful.  You previously said HMRC wanted further information which your daughter was going to provide. What was the result?

ForestPCT

We are waiting for HMRC's response to the additional info we've provided.  Will post when we here back!