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What mileage rate do you pay your staff?

What mileage rate do you pay your staff?

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What mileage rate do you pay your staff?  The full 45p or less and let them claim the remainder?

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14th Mar 2019 11:37

What rate do you pay yours?

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14th Mar 2019 11:41

They don't 'claim' the remainder -hope you're not telling them HMRC will cover the shortfall!

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14th Mar 2019 11:45

LOL. I remember now why I stopped using this platform. It seems to be full of people trying to get one over on each other.

Anyway to clarify (for memyself-eye). No I have not told them HMRC will cover the shortfall - like you I am a competent accountant. But thanks for your help!

And (for Accountant A) I have not arranged a mileage rate with my staff yet. Hence why I ask the question. But also thanks for your help!

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to nmprobinson
14th Mar 2019 12:27

nmprobinson wrote:

And (for Accountant A) I have not arranged a mileage rate with my staff yet. Hence why I ask the question. But also thanks for your help!

So what do you currently pay them for business travel?

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to Accountant A
14th Mar 2019 12:36

We don't have any currently. The staff come to the office each day and then go home. But I do need to pay some next week. Thanks.

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to nmprobinson
14th Mar 2019 17:40

nmprobinson wrote:

We don't have any currently. The staff come to the office each day and then go home. But I do need to pay some next week. Thanks.

If your staff are proposing to use their own cars for business use, presumably they may have to pay an additional premium on their car insurance (and possibly some admin fee for amending cover). If this business travel is likely to be either a one-off or infrequent and low mileage, the decent thing to do would be to pay the additional insurance (grossed up and taxed) as well as mileage, otherwise the staff member(s) will be out of pocket.

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14th Mar 2019 11:50

As a caring employer myself (just ask my wife) I would advise you pay the 45p - like wot I do.

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14th Mar 2019 12:08

We pay the 45ppm, on the rare occasions we require staff to go roaming.

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14th Mar 2019 12:56

Another vote for 45ppm

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14th Mar 2019 13:51

45p like most people i suspect

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By DJKL
14th Mar 2019 14:24

We are also 45p per mile but as we are now down to one member of staff (thats me) I have an incentive that we offer this rate, albeit I am lucky to manage much more than 400 miles per year at best.

Having said that, when we did have other staff we were also at 45p so maybe I am just generally a generous boss.

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14th Mar 2019 14:38

45p per mile.

I can't think of a valid reason not to. I have a client that only pays 20p per mile, but they're not professional people like all of us here.

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14th Mar 2019 14:53

I've only needed to pay it out on one occasion, but I did it at 45p per mile. The same employee (ad hoc) works full time elsewhere where she is paid 27p a mile, and she claims tax relief on the other 18p a mile.

But it reminds me of a very funny story. Her partner (a very good friend of mine) was working for a company that refitted b & q stores, and travelled up and down the country using his own vehicle. I think they paid about 18p a mile (2006-7) so he made a claim for tax relief on the rest. The total milage @ 40p a mile came to £3000, and he was jumping up and down in excitement. I said HMRC will only pay £600. Oh no he insisted It'll be £3000. He'd promised his partner £1000 and told his son he was getting him a playstation. Lo and behold the cheque arrived - for £600. Poor bloke was absolutely gutted. Lad still got his playstation but his partner never got the grand she was promised!

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to legerman
15th Mar 2019 11:31

I know someone who did the same (an accountant) and therefore working out his claim as being £X, so expected 20% of that to arrive.

The full amount arrived.

HMRC eh.

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14th Mar 2019 14:59

I've been paid 35p before whilst the director paid himself 45p. I swore every time I submitted my expenses claim and lasted only two years.

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14th Mar 2019 15:23

many year ago when I had a company car I was paid the fuel only rate - 9p/mile I think. Problem was the car was a diesel Cavalier 1.7 (non turbo) and always did 60+ to the gallon- way more than the actual fuel cost.
I had to 'find' extra receipts to get it past the finance people
I was less scrupulous then, though and I no longer trawl through waste paper bins outside petrol stations......

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to memyself-eye
14th Mar 2019 15:39

memyself-eye wrote:

I no longer trawl through waste paper bins outside petrol stations......

It's demeaning and, anyway, there are food banks now.

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14th Mar 2019 18:05

Food banks?
Yes I use those also........

(cheaper than Barclays)

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By marks
14th Mar 2019 23:04

We pay 45p per mile.

Do the right thing and pay the full amount. Dont be tight.

Hard to believe that you have never had staff had to go out to a client on business purposes in their own car.

You have been trading for years.

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to marks
14th Mar 2019 23:12

Yeah. Thanks. Going with 45p! All sorted now.

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15th Mar 2019 00:39

All my employees have Jaguars. They are expensive to run so I pay them 80p per mile.

So they are taxed on the 35p per mile "profit".

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By DJKL
to penelope pitstop
15th Mar 2019 00:52

I did wonder what Lord Prescott was doing these days.

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to penelope pitstop
15th Mar 2019 08:04

That incredibly generous of you, or are they all family members? Just you? Or do you pay all your staff far too much?

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