How is statutory mileage paid over 10000m?

How is statutory mileage paid over 10000m?

Didn't find your answer?

Could someone just confirm that for the purposes of paying mileage allowance at HMRC approved rates of 40p/mile the year starts on 6th April and 40p a mile will be paid each month until the 10000m mark is reached, after which 25p/mile will be paid until 5 April, at which point the 40p can start again?

Also if a new employee starts on say 1 January and say clocks up exactly 10000 miles by 5 April we can pay them 40p for the whole mileage.

Or are there apportionment rules?

Dave Collier

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By Dave Collier
24th Jan 2008 10:44

Thanks Euan

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By Euan MacLennan
24th Jan 2008 10:21

Statutory mileage allowance.
These are not "HMRC approved" - they are statutory allowances set out in ss.229-230 ITEPA 2003.

The first 10,000 miles a year refers to the business mileage in each (non-associated) employment in a tax year. There are no apportionment rules.

So:
- Yes, the year starts on 6th April;
- Yes, you pay at 40p a mile for the first 10,000 business miles (whether you pay monthly or against separate expense claims is irrelevant) and then at 25p a mile until 5th April;
- Yes, if a new employee clocks up 10,000 business miles in 3 months (he has my sympathies if you expect him to drive 40,000 miles a year on business), you pay him £4,000.

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