Mileage claims with NHS

ashe

Partner works for the NHS and drives in the community, quite a lot of miles. 

They're paid mileage uk to 3500 miles a year at 59p a mile for petrol, EV 4p a mile 

once you hit the 3500 miles you get 24p a mile for petrol, not sure about EV

she does about 6,000-8,000 miles a year.

someone put in her work group chat that you can claim extra back via hmrc once you've hit the threshold, as NHS pay 24p but government allows 46p per mile up to 10k. She has detailed records, postcodes etc and uses apps to record everything, is this something she can claim back? 

Dazed_and_C0nfused

ashe said:

Partner works for the NHS and drives in the community, quite a lot of miles. 

They're paid mileage uk to 3500 miles a year at 59p a mile for petrol, EV 4p a mile 

once you hit the 3500 miles you get 24p a mile for petrol, not sure about EV

she does about 6,000-8,000 miles a year.

someone put in her work group chat that you can claim extra back via hmrc once you've hit the threshold, as NHS pay 24p but government allows 46p per mile up to 10k. She has detailed records, postcodes etc and uses apps to record everything, is this something she can claim back? 

What vehicle does she use?  Where the the EV, which you have referenced, fit into things?

Also did the person who posted something in her work chat imply you could claim the difference between the NHS rate and 46p/mile back from HMRC 🤔

Did they provide a source for 46p even being a thing????

Alderbank

HMRC believes that the total cost of running a car (not just fuel but depreciation, tyres, servicing, garaging, etc.) is 46p a mile, based on figures calculated by the AA many years ago.

If your partner is refunded by their employer at a lower rate then they are effectively subsidising their business mileage by the difference. HMRC kindly allow them to claim back the income tax on that difference, so probably 20% of the difference.

So not quite as generous as it might appear.

Grumpy_chap

Dazed_and_C0nfused said:

Did they provide a source for 46p even being a thing????

I think that is a typo.  

HMRC rates 45p per mile for cars and vans for the first 10,000 business miles and 25p for each mile over the 10,000 mark.

The OP needs to understand it is only the tax that can be relieved - won't be able to claim the full difference.

Also, this seems inconsistent 

ashe said:

They're paid mileage uk to 3500 miles a year at 59p a mile for petrol, EV 4p a mile 

The petrol rate is very generous but the EV rate is very low.

GrubbyGirl_2

Have you carefully checked your P11D and looked at what your employer is declaring?  They have to put on the amount you're liable to be taxed on so they will have already done the calculation before submitting it to HMRC.  I know my employer did

TheSpectator

If at the lower end of the 6 - 8000 miles no refund will be due as the rate paid for the first 3500 miles (at 59p) exceeds the HMRC rates of 45p then potentially some additional tax to pay. A claim for the mileage above this will reduce any tax owing and if nearer 8000 miles a small refund may be due

Dazed_and_C0nfused

TheSpectator said:

If at the lower end of the 6 - 8000 miles no refund will be due as the rate paid for the first 3500 miles (at 59p) exceeds the HMRC rates of 45p then potentially some additional tax to pay. A claim for the mileage above this will reduce any tax owing and if nearer 8000 miles a small refund may be due

Good point.  Although if the excess above 45p was taxed via payroll that may change things.

silvercar

The fuel rate for EVs increased from 5p to 7p per mile on 1 Sept 2024.

If you drive your own electric car for business, you can claim mileage expenses at the same rate as petrol and diesel car owners - 45p per mile for the first 10,000 miles, and 25p for each additional mile. For a company owned electric vehicle the rate is 7p per mile.

Grumpy_chap

silvercar said:

The fuel rate for EVs increased from 5p to 7p per mile on 1 Sept 2024.

Something seems very odd, though, with the figures the OP has given.  For an EV, the mileage rate seems to be fuel rate only.  For an ICE, the mileage rate seems to be above HMRC AMAP at first and then below AMAP, but the full mileage rate, not just the fuel rate.  This is highly inconsistent and, IMO, unusual.

Bookworm105

Grumpy_chap said:

silvercar said:

The fuel rate for EVs increased from 5p to 7p per mile on 1 Sept 2024.

Something seems very odd, though, with the figures the OP has given.  For an EV, the mileage rate seems to be fuel rate only.  For an ICE, the mileage rate seems to be above HMRC AMAP at first and then below AMAP, but the full mileage rate, not just the fuel rate.  This is highly inconsistent and, IMO, unusual.

NHS has done it that way for decades, although technically there is no nationally fixed rate, rather it is a guidance rate as trusts are able to pay more or less than that rate at their own discretion.

Most NHS Trusts deal with the above AMAP tax consequence through monthly payroll, although some may do it via P11D,

as already identified, the OP has quoted incorrect figures for the "guidance" rates.

Mileage allowances FAQs | NHS Employers

if using a privately owned (NOT an NHS "company") EV, the NHS advisory rate does not recognise an EV and so still allows one to claim at 45/25 ppm

HMRC mileage rates for electric cars | 2024

silvercar

I've seen elsewhere that electric vehicles provided under a salary sacrifice scheme are considered as company cars when looking at hmrc allowable expenses.