NHS Business Miles

simongregson

throughtheblue said:

simongregson said:

Remember that the journey from home to your temporary work location is a valid business journey, so you can reclaim tax on the mileage as a deduction on your income, for the mileage value in excess of what the NHS are repaying you. This will be worth 20% or 40% of the mileage depending on your tax band. See here for how to do this Claim tax relief for your job expenses: Vehicles you use for work - GOV.UK (www.gov.uk)

Presumably if my employer pays me the mileage rate, above HMRC's guidance, then I can't claim tax relief?

If they pay you the whole journey from home to the temporary workplace, you can't claim back tax, because you were paid the whole expense with no tax deducted.

But if they insist you deduct your home to permanent workplace journey, you can claim back the tax on the mileage you have not been repaid, as in tax terms the whole journey is an expense as it is not a commute to your normal place of work, and you will have paid tax on the money you use to cover your car costs from your own resources.

simongregson

I am assuming the mileage rate from the NHS is 45p/mile.

tizerbelle

simongregson said:

I am assuming the mileage rate from the NHS is 45p/mile.

No.  New rates are 59p first 3,500 miles and then 24p a mile over that.

throughtheblue

simongregson said:

I am assuming the mileage rate from the NHS is 45p/mile.

Thanks, that makes more sense, and something I will do.

My trust currently has enhanced rates at 65p for the first, 3500 miles.

simongregson

throughtheblue said:

simongregson said:

I am assuming the mileage rate from the NHS is 45p/mile.

Thanks, that makes more sense, and something I will do.

My trust currently has enhanced rates at 65p for the first, 3500 miles.

I think you might only be able to claim how much you are down on a rate of 45p for the whole journey, check the gov.uk site as I've never managed to work for an employer paying above the HMRC rate

throughtheblue

simongregson said:

throughtheblue said:

simongregson said:

I am assuming the mileage rate from the NHS is 45p/mile.

Thanks, that makes more sense, and something I will do.

My trust currently has enhanced rates at 65p for the first, 3500 miles.

I think you might only be able to claim how much you are down on a rate of 45p for the whole journey, check the gov.uk site as I've never managed to work for an employer paying above the HMRC rate

So just to understand this, as an example, let’s just say I do a round trip from home to temp location, which is 60 miles. My business miles according to my employer is 30 miles, so I claim 30 x 65p. 

However, according to HMRC and their definition of business miles, I can claim tax relief on the remaining 30 miles, so 30 x 45p =£13.50 then take 20% of that figure to give me the tax relief I could claim? 

tizerbelle

throughtheblue said:

So just to understand this, as an example, let’s just say I do a round trip from home to temp location, which is 60 miles. My business miles according to my employer is 30 miles, so I claim 30 x 65p. 

However, according to HMRC and their definition of business miles, I can claim tax relief on the remaining 30 miles, so 30 x 45p =£13.50 then take 20% of that figure to give me the tax relief I could claim? 

I believe so yes. 

But don't forget you will be taxed on the 20p over HMRC rate that you receive from your employer. Either it will be done through payroll and you'll pay tax immediately on it ("payrolled benefits") or it will be declared on a P11D after the end of the tax year and your tax code adjusted after that to recover the tax.

Now, should you travel over 3500 miles and up to 10,000 miles in a tax year, the NHS will pay you at 24p but HMRC rate is still 45p, You wouldn't be taxed on these claims as its below the approved HMRC rate so you would claim tax relief on the extra 21p from HMRC again.

Over 10,000 miles and you'll claim 24p, HMRC rate is 25p so you could again claim the relief on the extra 1p per mile.

throughtheblue

tizerbelle said:

throughtheblue said:

So just to understand this, as an example, let’s just say I do a round trip from home to temp location, which is 60 miles. My business miles according to my employer is 30 miles, so I claim 30 x 65p. 

However, according to HMRC and their definition of business miles, I can claim tax relief on the remaining 30 miles, so 30 x 45p =£13.50 then take 20% of that figure to give me the tax relief I could claim? 

I believe so yes. 

But don't forget you will be taxed on the 20p over HMRC rate that you receive from your employer. Either it will be done through payroll and you'll pay tax immediately on it ("payrolled benefits") or it will be declared on a P11D after the end of the tax year and your tax code adjusted after that to recover the tax.

Now, should you travel over 3500 miles and up to 10,000 miles in a tax year, the NHS will pay you at 24p but HMRC rate is still 45p, You wouldn't be taxed on these claims as its below the approved HMRC rate so you would claim tax relief on the extra 21p from HMRC again.

Over 10,000 miles and you'll claim 24p, HMRC rate is 25p so you could again claim the relief on the extra 1p per mile.

Do you think under 3500 miles is counted as the mileage allowance payments that don't have to be reported to HMRC? I most likely will not be doing over 3500 miles. 

tizerbelle

throughtheblue said:

Do you think under 3500 miles is counted as the mileage allowance payments that don't have to be reported to HMRC? I most likely will not be doing over 3500 miles. 

No, you are receiving more than the approved mileage rate so there is a tax liability (20% on 20p per mile = 4p a mile) and HMRC always want to know if there is a liability to pay!  

turnitround

According to your other thread you car share with your partner to get to work?