Question re 'mileage' rate for nannies

[bbcessex]

If you pay your nanny per mile, what do you pay?

I see that 45p is often quoted as "recommended" by HMRC... my understanding is that this is the maximum allowed for tax purposes, not a 'suggestion'.

Am i right, and what do others pay / receive?

40p

We went from 40 to 45p when it was allowed. We did this instead of a pay rise last year

Thetokengirl .. can the employer claim
Tax relief on this then?

i get a work car but the nannies i know who use their cars get 45p per mile

Need to look at it as part of the overall "package". I opt for 45p instead of paying more salary and then paying NI on that.

No the employer cannot claim tax relief - the point is if you pay more than 45p the additional sum has to be reported to HMRC and the nanny will pay tax on it as a benefit.

I get 45p per mile

45p per mile. About half of that will pay for the petrol and the other half towards maintenance (additional servicing, needing tyres more frequently etc) - why should a nanny be out of pocket running their charges around for the parents benefit? Paying a respectable mileage rate shouldn't be seen as a pay rise. Have a think about what rate you would want if you were using your car for work purposes (not commuting).

Family A's nanny has a Peugeot 106 (1 litre engine)
Family B's nanny has a Saab 9-5 (2.4 litre engine)

Should they both be paying the nanny 45p per mile?

Just something I've wondered about as obviously the Peugeot is a lot more economical fuel wise per mile.

Yes they should. 45p per mile pays petrol & a little towards upkeep on a modest car, if the nanny chooses to run a more expensive car that's down to them.

I have a Land Rover Freelander because that's the car I want and having horses and dogs find it makes my life easier, my bosses want me to use it for work therefore realise that the cost of fuel means they have to pay 45p per mile however when I had to use my DP's car a few weeks ago because mine went in the garage for a week I charged them 30p per mile because I felt charging 45p for a corsa was too much, I don't think there is a right or wrong amount Its just what employer and employee think is fair