Passenger mileage allowance

Timmne

Morning all,

I'm evaluating mine and my girlfriend's tax situations pre tax year end and have come across the 5p per mile passenger allowance. Despite being an accountant, this is something I've never come across nor had to use, mainly I guess as it's such a small amount!

I need to know how it's treated if possible. Presently my girlfriend gets paid 32p per mile so I intend to claim back the 8p remaining of the HMRC agreed level of 40p on her tax return. I also would like to consider the passenger thing as she's always carrying two passengers with her (three managers take it in turns to drive to courses/meetings).

So am I able to claim the extra 5p per mile for carrying passengers or could I do 10p as there were two? Or am I wrong completely and considering allowing something that isn't allowable?

Thanks a lot!

System

You claim for each passenger at 5p per mile.

See http://www.hmrc.gov.uk/manuals/eimanual/eim31200.htm bottom of the page

BoGoF

My understanding is that you cannot claim the 5p per mile from HMRC, it is an exemption that applies if your employer pays you for carrying passengers. To quote from EIM31410- "


The rules for payments for carrying business passengers (see EIM31400) only provide an exemption from tax.

There is no corresponding relief or deduction where the employee carries fellow employees on business journeys, but the employer does not make payments for business passengers, or where payments are less than 5p a mile per passenger.

In other words, there is no equivalent to mileage allowance relief (see EIM31330) in respect of passenger payments."


So if employer does not pay you, no relief is allowable

Timmne

Shame!

Was sitting on a goldmine there, or so I thought....