Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Jonnyed
    • By Jonnyed 12th Aug 17, 4:24 PM
    • 5Posts
    • 0Thanks
    Jonnyed
    HMRC Mileage recovery PAYE
    • #1
    • 12th Aug 17, 4:24 PM
    HMRC Mileage recovery PAYE 12th Aug 17 at 4:24 PM
    Apologies if this is answered elsewhere by I have received some conflicting information about the matter. I used to be self employed whereby the cost of my business mileage and cost of running vehicle were offset against the tax I paid and received a good rebate.

    I am now employed on a PAYE basis (site work) so qualify for business mileage recovery at the HMRC rates. I use my own vehicle for work and pay for all fuel. My employer DOES NOT make a contribution towards the cost.

    Let's say I cover 15000 miles a year, in my mind that 10000 @ 45p/mile and 5000 @ 25p/mile = 5750.

    So via self assessment I submit my mileage to recover that amount for business mileage?

    I have seen conflicting information saying that I am only liable to receive 20% of that amount!!!

    Which one is it!? Seriously out of pocket if it's the latter

    Any help welcomed
Page 2
    • Dovetailcarpenter
    • By Dovetailcarpenter 12th Aug 17, 8:18 PM
    • 5 Posts
    • 0 Thanks
    Dovetailcarpenter
    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 !!!128077;!!!127995;!!!128077;!!!127995;!!!128077;!!!127995;
    • anselld
    • By anselld 12th Aug 17, 10:09 PM
    • 5,815 Posts
    • 5,528 Thanks
    anselld
    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.
    Originally posted by Dovetailcarpenter
    OK. Good luck with that argument with HMRC.
    • Apodemus
    • By Apodemus 13th Aug 17, 6:58 AM
    • 972 Posts
    • 796 Thanks
    Apodemus
    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 !!!128077;!!!127995;!!!128077;!!!127995;!!!128077;!!!127995;
    Originally posted by Dovetailcarpenter
    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.
    • 00ec25
    • By 00ec25 13th Aug 17, 9:03 AM
    • 6,649 Posts
    • 6,243 Thanks
    00ec25
    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.
    Originally posted by Apodemus
    you would be wrong in your thoughts then

    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.
    • 00ec25
    • By 00ec25 13th Aug 17, 9:14 AM
    • 6,649 Posts
    • 6,243 Thanks
    00ec25
    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.
    Originally posted by Dovetailcarpenter
    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 scenario

    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?
    • adam253
    • By adam253 5th Apr 18, 4:37 PM
    • 1 Posts
    • 0 Thanks
    adam253
    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
    • sheramber
    • By sheramber 5th Apr 18, 5:06 PM
    • 4,846 Posts
    • 3,632 Thanks
    sheramber
    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.
    • BoGoF
    • By BoGoF 5th Apr 18, 5:10 PM
    • 3,265 Posts
    • 2,596 Thanks
    BoGoF
    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.
    • redpete
    • By redpete 5th Apr 18, 10:01 PM
    • 4,261 Posts
    • 3,786 Thanks
    redpete
    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
    Originally posted by adam253
    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.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

141Posts Today

2,008Users online

Martin's Twitter