Reimbursement for Mileage

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AliceGB

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Jun 7, 2018
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  • #1
    Would someone be able to help with the following mileage query?

    We have an individual on our payroll that is classed as an external consultant, they claim for their fee on an annual basis and have now also submitted a claim to be reimbursed for their mileage. The journey they are claiming for is from where they usually work (A) to us (B). They will only make this journey once a year.

    Can we reimburse them for the journey from A to B at 45p per mile?

    Also, what happens if they travel from their home to our site, can they claim the full 45p per mile?

    Finally if an employee travels to a temporary place of business from their home address before they drive to their permanent place of business are they able to claim the full 45p per mile from their home to their temporary workplace or must they deduct their normal commute from this journey?
     
    dotcomdude

    dotcomdude

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    Jul 27, 2018
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  • #2
    AliceGB said:
    We have an individual on our payroll that is classed as an external consultant, they claim for their fee on an annual basis and have now also submitted a claim to be reimbursed for their mileage.
    Click to expand...

    Are they on your payroll or are they 'claiming their fee' (invoicing) you? If they're invoicing they should add it as a line on the invoice. If they're on your payroll you should be able to pay them for anything over their normal commute to work. There are different rates depending upon the total mileage paid in a year...
     
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    AliceGB

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    Jun 7, 2018
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  • #3
    Thank you for your quick response.

    They are now on our payroll but were previously invoicing us.

    Their claim is for 127 miles, for a journey they will make once a year.

    The information we currently have for them, we are requesting further clarification, is that the journey from their home to their normal place of work is 16 miles.

    The journey from their normal place of work to our site is 127 miles which they are claiming.

    If they claim from home our site do they have to deduct the 16 miles?
     
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    Alan

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    • Aug 16, 2011
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  • #5
    If they DONT go into their normal place of work then the whole journey from Home to Temporary place of work is allowable against tax.

    "Employees are entitled to tax relief for the full cost they are obliged to incur travelling in the performance of their duties or travelling to or from a place they have to attend in the performance of their duties – as long as the journey is not ordinary commuting or private travel. "

    ordinary commuting is from home to normal place of work - everything else is allowable.

    https://assets.publishing.service.g...ttachment_data/file/685996/490_0418_final.pdf
     
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    AliceGB

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    Jun 7, 2018
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  • #6
    Hi Alan,

    Can you answer this please:

    Example: my normal commute from home to work, location stated clearly in my contract, is 15 miles. One day I am asked to travel to another organisation to carry out my normal duties. I decide to travel there directly from home rather than to my permanent place of work first, the journey is 20 miles. Am I able to claim for the full 20 miles or do I have to deduct my normal commute of 15 miles and claim only 5 miles?
     
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    Newchodge

    Newchodge

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  • #8
    You are mixing up several different areas.

    If you as an employee travel to your normal place of work your employer can choose to pay you the cost of travel. But you will have to pay tax on it.

    If an employee travels, on behalf of their employer, to a location that is NOT their normal place of work, their employer can choose to pay nothing or to pay £1.00 per mile (or anything else) for the actual distance travelled. Generally anything over and above the cost of additional mileage @ 45p per mile is a taxable benefit.

    Anything invoiced by a non employee is payable if it is part of the contract or if the parties agree it is payable. The contractor should declare various things on their self assessment form, none of which is the business of the other party to the contract.
     
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    AliceGB

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    Jun 7, 2018
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  • #9
    Hi,

    The employer does not currently reimburse mileage for staff travelling between their home and normal place of work.

    The employer also does not currently pay for what could be considered their normal commute mileage to a place that is not their normal place of work if they travel from home or to home, therefore using my example I would currently only be able to claim for the 5 miles and that would be paid at 45p per mile.

    Would HMRC deem this to be acceptable?
     
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    Newchodge

    Newchodge

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  • #10
    AliceGB said:
    Hi,

    The employer does not currently reimburse mileage for staff travelling between their home and normal place of work.

    The employer also does not currently pay for what could be considered their normal commute mileage to a place that is not their normal place of work if they travel from home or to home, therefore using my example I would currently only be able to claim for the 5 miles and that would be paid at 45p per mile.

    Would HMRC deem this to be acceptable?
    Click to expand...
    Acceptable, in the sense of not incurring a taxable benefit? Yes, obviously. Acceptable, as in is that fair to the employee? HMRC would not give a ****
     
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