Nanny Mileage rate?

[74slackbladder]

Another new nanny employer question!
We have agreed nanny will use her car for any trips and have given her car seats etc.
We have yet to agree a mileage rate. She has a very small economical car. have explained to her that a mileage rate should do more than cover just cost of fuel as it should also give something towards general wear and tear on car. However, am out of touch with what it would cost to fuel up such a car (Ford KA), which would be my starting point for working out a rate....any suggestions??

0.40 pence per mile

I think this is what HMRC says

A while since I checked

i guess you mean £0.40?

That's what i put isn't it?

0.40 pence per mile

0.40pence per mile would be £0.004 pence....

You're right the mileage is not only fuel - it also compensation for the depreciation increased mileage brings and the extra servicing costs, because she should be having it serviced every x amount of miles and that will come round quicker if she's using it for work.

rates

Assuming she won't go over 10,000 miles working for you in a tax year then 40p/mile is fine. Above that figure it reduces to 25p/mile.

That table also, rather hilariously, gives the mileage rate for bicycles....

at Ruby and at me - as it also took frakk writing it down to realise where Ruby had gone wrong!

Some previous message threads on this subject which may be worth a read:

How much to pay nanny - link should start you at the point in the thread where mileage is discussed.

Questions regarding petrol mileage allowance for nannies - includes some information from Mranchovy about the payroll forms used for mileage allowance... and that you may not want to complete those forms.
If you use a payroll company, then just go with what they decide to do paperwork wise.

Talking of paperwork... it is useful to have your nanny log each journey made. Useful because it means the mileage claim is accurate plus that it gives you a clearer picture of what your nanny does each day, weekly routines such as Wednesday is Toddler Group day, plus enable you to discuss excessive mileage if it occurs.

For long trips out, I don't claim full mileage allowance... I claim 1/3 which covers the fuel I feel. A long trip out can mean an hour+ car journey and involve a high mileage, so I feel reducing the mileage claim helps stop my boss from saying no to trips out to Castles, Forts, other historic attractions.