Need advice - what to give for mileage???

[DeeT]

We have just had a wonderful girl start as a nanny with us and I wanted to know what the going rate was per mile for mileage to take kids to school etc?

40p is the going rate

Well 40p is the rate for tax purposes - above that and it may be taxable.

The 40p rate includes an element of insurance, servicing, tax and depreciation. In my nanny's contract I put in a mileage rate but with a weekly maximum, to avoid the bizarre position where my nanny would have a financial incentive to drive my children around all day. She does then get petrol money for further than average daytrips - but at a lower rate.

Great thank you for getting back to me.

Ladymuck, great tip thanks, these things are always best set out clearly to avoid misunderstandings..
Our new nanny is getting 30p a mile in her other jobs, but we are offering her IR rates ( we had already decided to before we had the discusion with her, so it seemed mean to renage based on new info)
As she is a very sociable nanny, I have been a bit concerned about how the bill could go if her other nanny friends are miles away or move job. The school run is only 1.5 miles each way.

BTW, if you pay less than 40p, the nanny can claim back the difference from IR at the end of the tax year, so he/she doesn't lose out in the end.

I'm afraid that the nanny can't claim the difference back from the Revenue at the end of the year. What she can do is claim a tax deduction for 40p per mile minus any mileage that you did pay her. But usually she will only be paying tax at 22%, so would only get 8.8p per mile back in tax (and that is assuming that you are not paying any mileage!). The Inland Revenue do not pay a nanny's mileage.