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Business mileage calculation

I have an employee who has submitted business mileage when they were send on a course.  

For argument sake and to make it clear to understand, assume the employee lives in Manchester, his permanent office work place is in London, and he was sent on a course in Scotland for the day. 

So on the day of the course the employee drive from his house in Manchester to Scotland and back again.  However, he is claiming mileage from the office in London up to Scotland and then back to his home in Manchester.  

I assume the mileage claim should be for mileage actually driven and not be claimed from the London office based on the fact he didn't actually travel to Scotland from London, he travelled from his house in Manchester. 

Probably a silly question but just wanted to be sure.  

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20th Apr 2012 15:44

Good one!

Well I have always used the rule that the claim must be from the place of business as per HMRC; it can be swings and roundabouts but if, say, the employee lived in London and the work place was in Manchester and he was sent to the course in Scotland he would only be able to claim the mileage from Manchester despite having driven from London. 

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It's from home

HMRC don't say that it must be from the place of business.  They (and the legislation) say it should be the actual journey, but it's not claimable/allowable to the extent that the journey is substantially ordinary commuting.

It's up to you what you pay, of course, but in the example given, if you pay the London to Manchester element it's taxable as pay (because it is pay since there wasn't an actual journey between London and Manchester).

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