NHS / HMRC mileage quandary.

anewloginapparently

HI all,

I’m hoping someone might be able to help me work out my mileage / pay implications if I take a new job (working in the community as a nurse for the NHS).

I am already a community nurse and currently work in a job where I commute to an office base, where I pick up a pool car and then go out on my visits using that. The travelling to my patients’ homes is obviously in work time and I don’t receive any mileage as it’s not in my own car.

I’ve been offered a new job in another NHS trust, which covers a large rural area of Scotland, in which I also I live in. This team does not have pool cars and one of the requirements of the job is I use my own car for business travel. 

I will still have an office base that is 40 miles away, that I will visit only 1 day per week (for a team meeting).

The other 4 days a week I will be based entirely in the community, seeing my patients in their homes and in various GP surgeries. Instead of setting off from the team office, I will be setting off on these journeys directly from my own home (where I will my notes at the end of the day).

So for example a typical day when I don't attend the team meeting might look like - Home --- GP surgery 1 (10 miles) --- patients home 1 (another 5 miles) --- patients home 2 (another 20 miles) --- GP surgery 2 (another 20 miles) --- patients home 3 (another 15 miles) --- hospital 1 (another 10 miles) --- home (another 20 miles). So in total 105 miles.

It looks like the NHS only pay mileage once your mileage for the day exceeds your return journey to your ‘normal base’ so in effect I would only get 25 miles mileage back for this typical working day above. Although this isn't completely clear! The NHS in Scotland seem to pay 56p per mile up to 3500 miles a year, and then 24p a mile after this. So a typical week I would get back £56 per week for the 4 days I am based in the community (variable depending on where I have to travel).

I see that HMRC also offer a tax rebate for mileage at 45p per mile (up to 10000 miles). I have been reading through all of the rules and it isn’t very clear what this covers. So would it also not be applicable until I had covered 80 miles in a day? Or alternatively would it cover all of the community travel I do, but not the journeys into the team office (obviously)? Or alternatively would my first journey of the day from home to a visit not be covered as would be considered commuting, but then any subsequent trips between patients’ homes be covered, even if the total journey for the day hasn’t exceeded 80 miles?

I have enquired whether my contracted base would be home, but it would need to be listed as the team base, even if I am only required to visit one day a week. 

Albermarle

It looks like the NHS only pay mileage once your mileage for the day exceeds your return journey to your ‘normal base'

Having worked in the private sector visiting customers, there was never any question that all business mileage was paid for the days out on the road. ( only fuel costs in my case as it was a company car) . The only exception was when visiting my office once a week. So that was all OK with HMRC, so it must be a specific NHS rule.
I know in the care sector they can also be a restrictive on what you can and can not claim. 

Although you say it is not completely clear, so I guess you need to get some full clarity on the rules.

silvercar

The logic is that you are prepared to make the journey to the office at your own costs, therefore the cash strapped NhS is only willing to refund the extra costs you have. 

While that makes sense for someone primarily in the office, it take no account that someone who isn’t in the office that often considering that the home office journey would be too much for a regular commute and therefore only taking the job on the basis that they can cope with the home office journey precisely because it is not that often.

Andy_L

You will be able to claim the tax back on the 80 miles your employer doesn't pay to reflect your normal commute (HMRC abolished the rules that made that taxable years ago)

However you will incur a tax bill on the amount that the 56ppm they do pay exceeds the HMRC rate of 45ppm

I've no idea how, from a practical PoV that is worked out. Do you claim for the miles not paid & then pay the tax owed on the miles paid or do you just plug in the total miles down & total amount paid & it works it out in one

anewloginapparently

silvercar said:

The logic is that you are prepared to make the journey to the office at your own costs, therefore the cash strapped NhS is only willing to refund the extra costs you have. 

While that makes sense for someone primarily in the office, it take no account that someone who isn’t in the office that often considering that the home office journey would be too much for a regular commute and therefore only taking the job on the basis that they can cope with the home office journey precisely because it is not that often.

Couldn't agree more. It also really doesn't take into account areas like the Scottish Highlands where practitioners cover large rural areas and would never commute into one office (especially at 40 miles each way everyday). 

It also means that a nurse who lives further away from the team base, covering a rural community gets punished twice, once for the cost and expense of having to travel to the team base, but then again because their other miles aren't covered by expenses, whilst a nurse who lives near the team base gets rewarded twice, with a short commute, and their expenses covered in full! 

Grumpy_chap

HMRC rules for your typical day

for example a typical day when I don't attend the team meeting might look like - Home --- GP surgery 1 (10 miles) --- patients home 1 (another 5 miles) --- patients home 2 (another 20 miles) --- GP surgery 2 (another 20 miles) --- patients home 3 (another 15 miles) --- hospital 1 (another 10 miles) --- home (another 20 miles). So in total 105 miles.

No claim for home to go surgery 1.
No claim for hospital 1 to home.
Claim everything in the middle.
So 105 miles less less 10 miles less 20 miles. 
Total 75 miles 

Keep records for the whole tax year and you can claim tax allowance at £0.45 per mile for first 10k miles and £0.25 per mile thereafter.

NHS pay mileage according to their rules.  Add up what the NHS pay in mileage over the tax year.

The difference between what the NHS paid and what HMRC allow as tax relief may give rise to a tax rebate or a tax liability.

anewloginapparently

Grumpy_chap said:

HMRC rules for your typical day

for example a typical day when I don't attend the team meeting might look like - Home --- GP surgery 1 (10 miles) --- patients home 1 (another 5 miles) --- patients home 2 (another 20 miles) --- GP surgery 2 (another 20 miles) --- patients home 3 (another 15 miles) --- hospital 1 (another 10 miles) --- home (another 20 miles). So in total 105 miles.

No claim for home to go surgery 1.
No claim for hospital 1 to home.
Claim everything in the middle.
So 105 miles less less 10 miles less 20 miles. 
Total 75 miles 

Keep records for the whole tax year and you can claim tax allowance at £0.45 per mile for first 10k miles and £0.25 per mile thereafter.

NHS pay mileage according to their rules.  Add up what the NHS pay in mileage over the tax year.

The difference between what the NHS paid and what HMRC allow as tax relief may give rise to a tax rebate or a tax liability.

That's very helpful thank you.