Nanny employers - will you be raising your mileage rate?

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Now that the HMRC tax has gone up to 45p per mile, will you be changing your contracts and paying this rather than 40p per mile?

This is the first month that we've had a nanny so I don't yet know what the regular mileage costs are going to be and what the effect would be of raising the rate (+12.5% but not sure what of). I shouldn't think it will be too much extra, and probably a good gesture to make, but I wondered what others will be doing.

what does your contract say?

When i was nannying it was worded that my mileage would be paid at recommended rate.

If worded like that (as mine was) Im sure nannies will be expecting to go up.

If contract says "mileage will be paid at 40p per mile) i dont think you are obliged to up it.

What mileage your nanny does will vary. I can do 250-400 miles a month. I work in a small village so we travel by car to get anywhere other than school.

My boss has said I will get the increased rate as of tomorrow.

Reminds me, need to do the claim for March plus up to and including 5th Apr. Then start new claim record for the new rate.

I also will get the increased rate from tomorrow. I asked for it and my boss didn't quibble, I do quite a lot of driving though, my school run is 26 miles round trip.

The contract states 40p per mile so I know I'm not obliged to pay any more. The first claim was for 167 miles which was for about 3 weeks so I think it will probably be in the region of 250-300 per month - maybe going up more in the summer as they do more day trips?

I think I will raise it though, it only seems fair.

I used to do 200 miles a week (a 4 day week )

a 22mile school run 8 times a week + the odd little trip to toddler / friends for lunch etc

I think it's stingy not to pay the HMRC recommended rate tbh. I'm not a nanny but I am self-employed and charge it at the HMRC rate

You're right it is stingy, but I've worked at several companies where it is not paid at the HMRC rate, so it's not a given.

DH is Forces and they're reducing it to 25p per mile from 1 May!

Just worked out that fuel is costing me 12p per mile.

How do you calculate the other costs though... such as cost of buying the car, cost of maintaining the car and the various consumables, insurance (policy renews later this year, who knows what the new cost will be), carseats, cleaning the car etc.

While fuel is a high part of the cost, it is the other things that I feel can make having a car costly. If the car costs £10,000 and you do 20,000 miles a year and replace the car every 4 years, then cost per mile is 12.5p (I think - £10000/80000miles) Insurance could be something like 2.5p-3p per mile.

I'm not a nanny, but I get refunded at 15ppm (cost of fuel only) so certainly not everyone is paying the HMRC rate.

I get 23p per mile (not a nanny) and pay my nanny 40p. I was explicitly told by an accountant at my nanny payroll company that the 40p (soon to be 45p) per mile is not the recommended rate at all, simply the maximum that can be claimed tax free. He said most Nannys on their books are not revue ing this.

That should say receiving not revue ing!