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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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.
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.
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!
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.
That is a bit daft
(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 ... !
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.
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
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?