HMRC Mileage recovery PAYE
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Dovetailcarpenter wrote: »If I leave my house in the morning, and go to pick up materials to take to the job site, that is business use. Whichever way you look at it.
OK. Good luck with that argument with HMRC.0 -
Dovetailcarpenter wrote: »Not contracted to one specific site, can be anywhere within 52 mile radius of head office. Think something can be done regards mileage allowance from the employer as they would have to fuel the company vehicle anyhow.
Thanks Ooec25 👍🏻👍🏻👍🏻
I would have thought that the head office would be the Base in respect of mileage claims and any claims for travel to site would be actual mileage less the distance from home to Base, for each journey.0 -
you would be wrong in your thoughts thenI would have thought that the head office would be the Base in respect of mileage claims and any claims for travel to site would be actual mileage less the distance from home to Base, for each journey.
the HMRC rules as to what constitutes business travel are explained in great detail here
https://www.gov.uk/government/.../490-employee-travel-a-tax-and-nics-guide
some of the overall issues to be considered include, for example:
- does the 24 month rule apply
- is the employee in fact employed to cover a wide geographic area, not work at a single location (even temporarily)
- is the employee depot based
- is the employee a manager who regularly visits a pattern of locations
On the other hand, a company is free to have its own policy as to what it does or does not pay. Whether some, all, or none of that payment is taxable is then a question of how the company policy tallies with the HMRC rules.0 -
Listen OP, it can take 10 posts before enough details come to light that the answers given are no longer misleading or addressing a vague/incorrectly understood scenarioDovetailcarpenter wrote: »Listen, I appreciate your input up to this point. Around 10 posts on any forum is where I tend to see people get on their pedestal about things. If I leave my house in the morning, and go to pick up materials to take to the job site, that is business use. Whichever way you look at it. If I were driving just myself to work where I sat working then it would be a commute. Thank you to all that have given me a clearer insight into the matter.
as has been said what you carry in the van does not dictate if it is a business journey. What you say above is fundamentally wrong.
For example: if it is a company owned van (and so subject to the fixed rate benefit in kind charge) then all business and ordinary commuting journeys are tax free. That is a rule applicable only to vans, not cars and only to company vans, not private vans
if a personal van is driven to a depot to collect materials and then goes on to the site the journey to the depot could be classed as ordinary commuting depending on what the employee's contract says is their place of work. (they may be depot based)
if an employee contract assigned them an area to work in then anywhere they visit in that area is ordinary commuting irrespective of temporary workplace rule
it has taken this many posts to establish that you a) drive a van b) work in construction. We still do not know the details of your contract of employment as to what is says is your base of work, nor do we know why your mention a very specific figure of a 52 mile radius
there are differences in the rules applicable to the self employed and the employed. Only with knowledge of full details can anyone give a solid answer. On what you have said so far it is probable that your journeys from home to site are attendance at a temporary workplace and so claimable, but we don't know if you make stops on the way at a company location?0 -
Hi, I'm in the process of submitting my MAR claim and seem to be similarly confused at why I only get 40% of the claim.
If my employer paid the HMRC rates of 45p per mile for 10k miles, I'd get £4,500 in expenses paid throughout the year and not taxed, so £4,500 cash.
They only pay 11p, so I get £1,100 in cash and have to claim the additional £3,400 through MAR. They do this by increasing my tax free allowance, so at throughout the following year, I pay tax on £3,400 less than I would have originally which works out as additional £1,360 cash, so would like to understand why as I can't help but feel like I'm £2,000 out of pocket.
This is a new employer that only pay 11p, my previous employer paid the full 45p0 -
Are you using your own car? 11p is a mileage rate for company cars. There would be no further claim if it is a company car
HMRC mileage allowance is refunding the tax paid on the amount your employer has not paid you when using your own car up to the approved amount.0 -
If HMRC were to pay you the full amount then no employer would pay any mileage allowance would they. It is not the taxpayers role to pay the costs of your employment - that is your employers job.0
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Hi, I'm in the process of submitting my MAR claim and seem to be similarly confused at why I only get 40% of the claim.
If my employer paid the HMRC rates of 45p per mile for 10k miles, I'd get £4,500 in expenses paid throughout the year and not taxed, so £4,500 cash.
They only pay 11p, so I get £1,100 in cash and have to claim the additional £3,400 through MAR. They do this by increasing my tax free allowance, so at throughout the following year, I pay tax on £3,400 less than I would have originally which works out as additional £1,360 cash, so would like to understand why as I can't help but feel like I'm £2,000 out of pocket.
This is a new employer that only pay 11p, my previous employer paid the full 45p
You might believe that you are out of pocket but why should I (as a taxpayer) reimburse you for all expenses associated with you earning money for your employer?loose does not rhyme with choose but lose does and is the word you meant to write.0
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