Do you think this is fair?

[Sleephelpneeded]

If a company usually pays 40p a mile for travel expenses, do you think it’s fair they’re only paying someone 15p as otherwise it would apparently be ‘costing the company too much?’ 🤨

This person is travelling a significant number of miles at the company’s request (over 200 a week), although they’re being paid the same as someone who’s travelling far less. (They have to use their own car too, not a company one!)

YABU: they’re being paid something, they should be grateful
YANBU: they should be paid 40p a mile no matter how many miles they’ve travelled.

What does their contract say, that’s where I’d be starting.

I assume they are travelling 200 miles a week for work reasons and this isn’t travel from home to their normal place of work?

If the policy is 40p/mile for business travel then everyone should get that rate, regardless of number of miles.

Yes this is entirely business travel. I haven’t seen the contract so I’m not sure what it says!

Ah, I was just trying to think maybe they were making an optional contribution to a long commute (would be unusual and dodgy from a benefit in kind perspective but it was all I could think!)

From my days of claiming mileage, I think there is a limit on the number of miles that can be claimed at 40p and after that it’s only 15p per mile for tax reasons, but I can’t remember much about it - might be worth looking for some HMRC guidance though.

Can they put in a claim with HMRC? Think you can claim up to £3k per year for the past 4 years

It doesn't sound fair, no!

I've been lucky that I've always got the government max mileage from my employer but some don't and to be honest I think people.are just too knackered to do it themselves. I would.

Standard HMRC is 45p first 10,000 then 25p after that - seems low to be only offering 15p

If you do over 10k miles a year, the HMRC rate drops to 25p per mile.

15p seems very stingy.

I know you've said it's entirely business travel, but is the start or end location further away than other people's? Is any form of hybrid working involved? Or is it all calculated from e.g. office to market? SO you drive to work and then start claiming milage?