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Post Info TOPIC: Mileage Allowance taxable


Master Book-keeper

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Mileage Allowance taxable
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In what circumstances would mileage be taxable?

I have been asked to make a retrospective P87 claim for the difference between what the employer pays against the approved rate.  Looking at the payslips some mileage is showing as taxable and some not.  If it makes any difference this is a county council and is for someone who travels to peoples homes to provide daily care.



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John 

 

 

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Hi John, could it be that it has already been sorted through PAYE? If there is a tax free amount, and a taxed amount could this mean she was paid over and above by the employer, as an oppose to being reimbursed less than AMAP?

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Master Book-keeper

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Its all at a set rate below 45p a mile.  Some months there is just mileage and some months mileage and taxable mileage separate, but the mileage rate is the same.



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John 

 

 

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Is there a total number of miles at your disposal? Human error on their payroll department? Everything I'd suggest you already know.

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Master Book-keeper

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Assuming she isnt in the 40% bracket, not done more than 10000 miles, hasnt got a weird tax code?

Maybe as Johnny suggests its human error - fingers punching the wrong codes in the payroll.

Can she ask at work why? Its a fair question methinks.

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 Joanne 

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Master Book-keeper

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Hi Joanne

Part time earning about 12k a year and although I haven't added it all up I'm fairly certain its under 10k mileage.  Tax code for 2016/17 is 1095L although Im doing the 4 years previous I spotted this on the current year and at first I thought it was because she'd gone over the 10k mileage, but its on earlier months as well.

eg  Taxable Mileage 99

Mileage 111    and the 111 hasn't been taxed but the 99 as.  The next month will just show mileage and not been taxed.

so I don't think its fat fingers otherwise it wouldn't say taxable mileage.

 

It's a puzzler alright and I will get her to ask at work.

 



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The company I work for pays mileage to one of our engineers travelling from job to job using his own vehicle. (too many speeding convictions to use a company van!). The mileage is taxable for his journey from home to our offices and back again but non taxable to and from the various clients.



-- Edited by pictures on Tuesday 7th of February 2017 10:26:41 AM

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Julie



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Thanks Julie, I can see the sense in that, as home to work is not covered and therefore is a taxable benefit.  This may well be the case here I don't know yet.  It's maybe if she has to attend a meeting at the county councils offices every now and then.

 

Now here's a cheeky question for everyone.  Homes visited are say within 10 miles of her home, but the county council is 20 miles away.  Should the daily journeys begin and end with the travel to the county councils offices, if that is her place of work?

I remember back in 2007 one of my work colleagues would, on the odd occasion work in Derby, were she lived, but her place of work was Chesterfield. She would always legitimately claim mileage for it.



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John 

 

 

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Well I had always thought that travel to your first job of the day should be taxable unless it was further away than your first place of work. But I think that's out of date and there have been rules since about temporary places of work, if I remember correctly it related to minimum wage and paying people like carers to travel to their first job of the day. There was a ruling on it a year or so ago I think.

 I've found references to a 10 mile rule but only on external websites etc, I can't find anything directly from HMRC.



-- Edited by pictures on Tuesday 7th of February 2017 11:12:43 AM

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Julie



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It would be a rather brutal rule to disallow the MAP for carers due to the location of the HQ. 

 

But then, it is a HQ, rather than a permanent place of work? Although I don't think the difference is written in law. It is different from say a driver who has to go to his permanent workplace each day to collect his vehicle. 

 

 I do know carers who work in the community, immediately around the council offices, and they have no issues with their MAP, they receive their rotas via email - with occasional CPD as and when.

Common sense would say that the travel is obviously genuine, regardless of where A and B are located - I know there are caveats but surely that is to combat those who abuse the system, rather than deny the claims of those who are genuine.

 

But then, opinion means nothing! 

 

Do you think it is possible that the payroll department have prorated her AMAP due to her working P/T? I know that makes no sense but....

 

 

 

 



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Master Book-keeper

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abacus12345 wrote:

Do you think it is possible that the payroll department have prorated her AMAP due to her working P/T? I know that makes no sense but....


 To be fair Johnny, the amount they are paying is reasonable, my initial q was to why some of it is taxable, and I think the most likely cause is travel to offices for meetings, which I would assume is classed as home to work and return) I will wait until she gets back to me though after she has asked the personnel dept.

 



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