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Paid childcare

Discuss everything related to paid childcare here, including childminders, nannies, nurseries and au pairs.

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Original poster

Nanny mileage- how much?

26 replies

DarrellRivers · 18/05/2007 13:44

My nanny has just pointed out that she drives the DCs around to various things and she doesn't get any petrol money.
Want to be helpful, how do you arrange it?
-mileage diary etc
TIA

OP posts:

Are your children’s vaccines up to date?

Set a reminder

RoundTheBend · 18/05/2007 13:48

Ask her to submit mileage claims each month and then pay her (without deducting tax) the amount she has claimed. You can decide how much to pay her. The Inland Revenue allow up to 40p a miles for first 10,000 miles. If you decide to pay her less than this amount, she can reclaim the difference from the Inland Revenue on her personal tax return each year.

OFSTEDoutstanding · 18/05/2007 13:49

When I was a nanny I had to keep a note of hoe wany miles I did during the day and at end of every week I was paid 40p per milebut having said that I paid my own business insurance and paid to maintain and tax car myself. If you are already paying for cars up keep or the extra she pays on her insurance to carry your children in the car then I would think you could maybe just agree on a set amount each week

RoundTheBend · 18/05/2007 13:50

You can decide how much to pay her per mile (not how much of her claim). Work out a per mile rate that you are both happy with and, if necessary, she can reclaim the difference from the IR.

Original poster

DarrellRivers · 18/05/2007 13:51

Yes she pays her insurance /tax and her car upkeep-she started working for us before she could drive, so it was never agreed initially
I think i will get her to submit a monthly mileage then and pay her 40p per mile

OP posts:

Original poster

DarrellRivers · 18/05/2007 13:53

Round the bend, I am being thick, how does this work in practice? she doesn't submit a tax return as all her salary is taxed at source
How does the difference get worked out with the IR?

OP posts:

RoundTheBend · 18/05/2007 13:56

She is quite entitled to submit a personal self assessment return each tax year. And on that return, she can claim back from the IR the difference between the allowed mileage rates and what she actually was given. Probably a bit of a pain for her if that is the only reason she has to do a tax return but to some people is really is worth it if they do loads of miles.

Original poster

DarrellRivers · 18/05/2007 13:59

Yes you see I suspect she probably wouldn't submit one, as it will be a pain for her to do it.
So what do other people pay per mile then, lets have a range of values so I can work out how much to give her.
Anymore and she's going to be earning more than me soon

OP posts:

FioFio · 18/05/2007 14:02

This reply has been deleted

Message withdrawn

Original poster

DarrellRivers · 18/05/2007 14:03

Yes she does

OP posts:

NannyL · 18/05/2007 23:13

as a nanny i have a mini note pad in my car.

every day as i arrive at work i note down the miles.
when i leave i note down the miles.
at the end its very easy for me to work out how many miles i have driven each day.

I add it up every couple of weeks and my bosses pay me in cash

NannyL · 18/05/2007 23:14

oh and my class 1 buisness insurance costs me about £2 extra per year!

not exactly alot.... less than 4p per week!

Original poster

DarrellRivers · 19/05/2007 13:55

nannyl how much do you get per mile please?

OP posts:

nannynick · 19/05/2007 18:10

There is a downside to paying on a per mile basis.

If the nanny likes to get out and about (I am such a nanny and think nothing of driving 60+ miles in a day to visit somewhere), then it can get very expensive for the employer. The employer then in turn restricts the mileage the nanny can do, thus restricting the children in what they like to do.

droopymummy · 17/06/2008 15:28

Help please! I am very confused about mileage...

Our nanny is great - she has worked for us for 18 months and has used her own car for occasional trips out with the kids, perhaps 10-15 miles per week, but has never charged us.

However, now we have three kids and the oldest two are doing more activities she is doing a few more miles, but still not unreasonable (30 miles last week) and she wants paying for them.

We are happy to pay her (of course!) and were planning on 40p a mile as that is what she wants and it seems to be what other people pay (and what the taxman allows).

But I have seen here, and heard from others, that we can pay her less than that and then she claims the rest from the tax man on her form at the end of the year.

Is this true and if so how does it work?

Can I pay her any lesser amount I like? If I paid her 5p per mile, would she really not end up out of pocket?

Sounds almost too good to be true - please could anyone who knows about this sort of thing enlighten me?

Thanks.

AtheneNoctua · 17/06/2008 16:03

I think 40p per mile will just cover the cost of petrol these days. DH gets his mileage reimbursed and we worked out that with today's prices he wasn't really getting much more than the fuel.

imananny · 17/06/2008 17:57

hope you wont pay your lovely nanny 5p per mile

seriously 40p seems to be the norm that people pay as it is meant to cover wear and tear of car as well as petrol costs

though as petrol is soooooooooo exspensive at mo, will the price ever go up to 50p or will the nanny then have to pay tax on it?

I NEVER use my car, will always ask and get a works car, reliese that not all nannies are as lucky as me

some car insurances will not charge for buisness, some will, if they do,then the employer should pay

very true Nick, but guess that is one of the reasons I have a work car, I do a lot of miles a week to and from school/nursery, can be at school 3 times a day - so 6 there and back journeys - then add on trips to tumble tots, swimming,football club etc as well as visits to friends

i do 150 miles a week with the above, so would cost a mb £60 a week

nannyL · 17/06/2008 18:59

i do at least 200+ miles a week so get £80+ a week petrol...

but now petrol is so expensive i dontget that much for wear and tear.

If petrol gets much more expensive will seriosuly consider not using my car for work

nannynick · 17/06/2008 19:07

It's known as MAR - Mileage Allowance Relief.
I think most people would need to complete a P87. More details about how to get MAR
I don't know anyone who has actually completed this form... or how it works. I do wonder where the money comes from... HRMC aren't really known for giving away money that much, there tends to be a tax-rebate loop.

Probably a real hassle to try to get a rebate. So far better if you as the employer can pay the Approved Mileage Rate (as you plan to do).

nbee84 · 17/06/2008 20:18

I have recently started a new job and for the first time am getting mileage paid. (now a nanny - was a childminder before and didn't charge for mileage)

I am getting 30p per mile. Is this ok? Is it covering my petrol? I realise it may not be covering much wear and tear but they are being good to me in lots of others ways that I wouldn't push for more if it is covering the actual petrol costs.

AtheneNoctua · 17/06/2008 20:59

fill up your tank, use it up, track your mileage, and divide the the cost to fill the tank by the distance driven and you'll know if it's more or less than 30p per mile.

pdf · 18/06/2008 15:02

most nannies get about 40p per mile as thiis is what is currently recommended by inland revenue

imananny · 18/06/2008 19:18

i did what athena said regards to working our mileage (just for fun, as i have a nanny car)

worked out costs my car 25p a mile so if i did use my car would work out 15p per mile wear and tear

is that good?

AtheneNoctua · 18/06/2008 22:08

You used a whole tanks of petrol in the last 24 hours????

LadyMuck · 18/06/2008 22:17

I'm not convinced that RoundTheBend's assertion that the Inland Revenue will make up the difference is stictly true. As far as I am aware what actualy happens is that you are entitled to tax relief on 40p per mile regardless of what you are actually paid. So even if you are not paid mileage you can claim a tax deduction of 40p a mile. Assuming that the nanny is on 20% tax, then that works out at an effective 8p per mile.

FWIW I always said that I would pay the HMRC approved rate but gave a limited maximum mileage each week, simply because I didn't want my children to spend more than an hour a day in the car, but also making it clear that I would pay mileage for one-off day trips etc.

imananny · 18/06/2008 22:33

nooooooooooooooooooooooo athena

meant i filled up the other week, which cost £60 and i always re set my counter, and as i filled up tonight, i checked to see how many miles i had done with my tank of petrol , and then divided it

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