Mileage Rates

[littlelucys]

Hi all, what mileage rate do you reimburse your nanny at? Looking for a straw poll!!

Thanks. :-)

My employer used to pay me 50p per mile but in my new job I have stated 45p per mile is fair.

Anything above 45p per mile becomes a taxable benefit. We paid 35p per mile.

40p in one job, 45p in another. Think the max rate changed. Have had jobs where there was none... restrictive and ended up being part of the reason for moving on.

What is the alternative in your area? Bus, train, taxi, cycle with trailer? Where would they go, how often would they go out? Where do you want your children going - if they have an interest in something, say castles, would you want nanny to take them to visit a castle? Would you do that kind of visit yourself, say at the weekend?

My DDad alway reckoned it cost twice the petrol to run a car.

So mine would be 28-38p depending on roads.

But a nanny isn't going to be doing long empty motorways in a very efficient diesel and may well be younger and have to pay double or more my insurance.

40p plus seems fair.

Think HMRC standard rate for mileage is 45p per mile, so if she needs to put it down on any formal paperwork then you should use that.

40p
the HMRC 45p is not the standard - it's the maximum amount that you can pay without it becoming a taxable benefit.
It does rather depend on the car in question and presumably most nannies are not driving the sort of travelling salesman saloons that the max 45p rate was designed with in mind.

ah ok, well I use 45p on all my tax stuff as I do lots of short journeys about town, which I presume is what OP's nanny is also doing.

The allowance needs to compensate for buying the car in the first place, doesn't it?

Most nannies would probably do less than 4000 miles a year for work, may be a lot less if lots of local activities.

40/45p I suspect is typical.

Nannies being paid less than 45p per mile (for the first 10,000 business miles) - note that you can ring up the tax man after the end of the tax year (i.e. next week) and ask for the difference to be adjusted in your tax code. You can also backdate your claim for previous years but you only have until 5 April 2014 to claim for 2009/10 (you can no longer claim for anything before 6 April 2009). The contact number is on this page.

So if you have been paid 25p per mile for 2,000 miles you can claim 2,000 x 45p - 2,000 x 25p = £400 as an expense, which should reduce your tax bill by £80, although this won't help you if you have agreed net pay of course.