Share this content
0
2451

Car allowance and mileage claims what is allowable

Employee gets car allowance and a mileage allowance of 10p per mile. Can he claim 45p on SATR

Client who is an employee gets a car allowance from his employer which is taxable via PAYE and he is also paid 10p per mile for each mile he drives. He drives to a variety of temporary workplaces.

Can he claim the difference between the 10p a mile and 45p per mile on his SATR?

Replies

Please login or register to join the discussion.

17th Jan 2018 10:00

Making a lot of assumptions to cover the holes in your query, yes.

Thanks (0)
to lionofludesch
17th Jan 2018 10:39

What holes? I think the question is both admirably concise and full of all the relevant facts.
The only quibble might be that it does not specify 10p per mile on business, but that can be inferred from the mention of temporary workplaces in the next sentence. And it could have specified 45p a mile for the first 10,000 miles only, but really ...!

Thanks (2)
to Euan MacLennan
17th Jan 2018 11:02

Whose car is it ? How many miles are travelled in the year ?

Jeez - 10p a mile. What a tightwad !

Thanks (1)
avatar
to lionofludesch
17th Jan 2018 11:22

The employer would say they're actually paying out 10p per mile plus the car allowance (assuming the employee wouldn't get the latter if the job didn't involve travel).

As an aside, wouldn't it be more efficient for the employee to be paid the full 45p/25p per mile plus a lower car allowance? There would be an NI saving for both employee and employer since the car allowance is subject to NI and the mileage payment isn't. It would require the number of miles travelled to be predictable in order to work out the numbers, though.

Thanks (1)
to neiltonks
17th Jan 2018 12:25

A good point of view.

Thanks (0)
avatar
17th Jan 2018 10:43

Well said Euan

Thanks (1)
avatar
17th Jan 2018 11:22

Regarding the tight wad. Local National Heath Trusts often pay less than 45p per mile. And they wonder why more nurses are leaving the NHS than joining!!

Thanks (0)
By mrme89
to pauljohnston
17th Jan 2018 12:28

I was on jury service last year and a fellow juror was a nurse. She paid in excess of £150 parking per month and there was a 7 year waiting list for spaces!

Thanks (0)
to mrme89
17th Jan 2018 12:40

It's a disgrace.

Nye will be turning in his grave.

Thanks (2)
to lionofludesch
17th Jan 2018 14:52

Didn't he resign in 1951 once everyone realised he had created a monster?

Thanks (0)
to andy.partridge
17th Jan 2018 15:43

You're thinking of Frankenstein, Andy.

Thanks (1)
avatar
to mrme89
17th Jan 2018 13:03

mrme89 wrote:

I was on jury service last year and a fellow juror was a nurse. She paid in excess of £150 parking per month and there was a 7 year waiting list for spaces!

Most people have to pay for parking at work - public and private sector.

Thanks (2)
By mrme89
to Accountant A
17th Jan 2018 13:52

I don't pay to park in my employers car park.

The only employer I have had that charged for parking was a Leeds City Centre law firm.

Thanks (0)
to mrme89
17th Jan 2018 15:07

mrme89 wrote:

I don't pay to park in my employers car park.

I've never paid for parking at work. Crazy idea.

Thanks (0)
By mrme89
to lionofludesch
17th Jan 2018 15:16

Looks like Accountant A is in a minority.

Thanks (0)
avatar
to mrme89
17th Jan 2018 16:40

mrme89 wrote:

Looks like Accountant A is in a minority.

Bit off topic but genuinely surprised. Maybe it's more a big city thing people having to find and pay for parking. When I trained, I'm not sure there was even parking for all the partners never mind staff. City centre offices have minimal parking and what there is obviously goes to the people who run the businesses! Can't remember the exact figure but former colleague (middle management) pays c£2,000 pa to park in Leeds. If you see those sorts of figures, you realise what a great tax-free perk parking is.

Thanks (0)
to Accountant A
17th Jan 2018 17:08

Don't work in a city.

That's my advice.

Thanks (1)
avatar
to lionofludesch
17th Jan 2018 18:29

lionofludesch wrote:

Don't work in a city.

That's my advice.

Same is broadly true of the c100,000 population town closest to me. Old Victorian buildings with (obviously) zero parking provision and expensive on-road parking courtesy of the Council. New hospital built locally probably has about 25% of the parking that it would need to provide properly for patients, staff and visitors - and that costs a fortune.

Most people have to go where the jobs are and there are more jobs in cities. Nice if you have the choice.

Some decent transport infrastructure would be good but that's another story.

Thanks (0)
avatar
17th Jan 2018 12:44

Sorry Lion .. to fill in the gaps. It is his own car, the miles he is paid 10p per mile for are business miles and the mileage is just under 10,000 miles. I believe your "yes" was saying that on that basis he can claim 35p per mile (45p less 10p) on his tax return for the business mileage?

Thanks (0)
to anneaccountant
17th Jan 2018 12:53

Yes - he'll need the tax relief to help cover the cost of the fuel.

Anyeway. as mentioned above, it's not a well structured deal from a tax/NI point of view.

Thanks (0)
avatar
19th Jan 2018 10:31

Yes

Unless your client is a French Non Dom in which case

Oui

Thanks (0)
avatar
19th Jan 2018 12:09

TBF a lot of medium to large employers can’t be bothered with the admin involved with mileage claims ,and a car allowance is an elegant alternative;leaving the employee to sort out his tax clawback.However in this instance why bother with the 10p claim.My brain isn’t in gear,does that go towards covering the EE’s nic ?

Thanks (0)
avatar
19th Jan 2018 18:59

So yes, for the business miles they can claim the difference between the 45p and the fuel reimbursement up to 10,000 miles and 25p per mile thereafter.

Thanks (0)
avatar
20th Jan 2018 08:57

Surely beyond 10,000 miles they can claim 15p/mile. ie the difference between the 25p allowance and the 10p reimbursed.

Thanks (0)
avatar
By mccams
05th May 2018 16:05

Sorry for jumping in. Quick query - my daily commute to work is 40 miles. If going directly to customer then my employer will pay mileage over and above the 40 miles. If I am going directly to customer am I allowed to claim the additional 40 miles via HMRC?

Thanks (0)
Share this content