Mileage allowance to staff

Mileage allowance to staff

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Hi folks,

What do you pay staff per business mile, e.g. if travelling from office to clients?

Also what about from their home to clients?

I know £0.45 is maximum tax allowance but I am thinking of paying only £0.30 per mile

Replies (12)

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By The Innkeeper
09th Sep 2014 11:47

We pay

HMRC approved rates . This then stops the smart [***] staff from trying to see where the figure comes from and wasting time on the internet trying to see what they ought to be getting.

Thanks (1)
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By duncanedwards
09th Sep 2014 11:48

You can ....

pay what you like.  The 45p rate is what it is - a maximum tax-free rate.

In terms of the journeys that count as business, and so non-taxable for the employee (subject to the 45p limit, etc.), I think that is illustrated in the HMRC manuals.

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By King_Maker
09th Sep 2014 11:52

Why are even contemplating paying less than the (stingy) HMRC rate?!

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By The Innkeeper
09th Sep 2014 12:02

NHS Rates

(effective 1 July 2014) are 56p per mile up to 3500 miles per annum and thereafter 20p per mile.

So for 10000 miles the 45p per mile is a better deal!

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Replying to atleastisoundknowledgable...:
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By HeavyMetalMike
09th Sep 2014 12:10

My old employer (top 15 firm) paid 39p when the rate was 40p - arguably some saving across a few hundred staff, but at what cost to goodwill?

So I overstated the miles driven by 2.5%

 

Just pay 45p and keep your staff happy.

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Replying to atleastisoundknowledgable...:
Euan's picture
By Euan MacLennan
09th Sep 2014 12:37

That is a bit daft

The Innkeeper wrote:

NHS Rates

(effective 1 July 2014) are 56p per mile up to 3500 miles per annum and thereafter 20p per mile.

So for 10000 miles the 45p per mile is a better deal!

So, every employee with any mileage has a BIK of 11p for up to the first 3,500 busines miles, which has to be reported on a P11D, and can then claim 25p a mile on the next 6,500 business miles and 5p above 10,000 business miles as an allowable expense of employment.  It all makes work for the working man to do ... !

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By The Innkeeper
09th Sep 2014 12:20

@heavymetalmike

Is that not an offence under the Theft Act and/or the Fraud Act?

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Replying to JCresswellTax:
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By HeavyMetalMike
09th Sep 2014 12:26

Did those Acts exist then (before 2007?)

Yes, naughty I know but as the tax manager I hardly got out much so it wasn;t major fraud.

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Replying to Lone_Wolf:
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By The Innkeeper
09th Sep 2014 12:31

Theft Act 1968
So I think the answer to that is yes and fraud would certainly be a common law offence. I did forget to mention False Accounting

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Replying to Lone_Wolf:
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By The Innkeeper
09th Sep 2014 12:41

Duplicate

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By HeavyMetalMike
09th Sep 2014 12:41

Poxy public sector. So they get a pay rise for their miles and the rest of us workers are still on 45p?

 

Innkeeper - yes small fraud, but about £25 over 5 years I reckon?

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By mrme89
09th Sep 2014 13:02

£25 over 5years?
Why even bother? Not that I condone doing it for a larger sum.

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