Mileage at work

[GeneLovesJezebel]

I use my car for work and get paid mileage. The amount has been the same for several years.
With the price of petrol rising, how often can we expect them to review it ?

Probably never 🙈 I’m public sector so definitely never. Yet we’ll all still be expected to afford to travel for work.

If it’s 45p a mile up to 10,000 miles 25p after then that’s the max they can pay without it being taxable so it’s set by government. I’ve worked in raw for 25 years and remember it being increased once years ago from 40 to 45p

Worked in tax not raw

I don’t get 45p

I was just wondering if a company has to review it every so often.

What an employer can pay per mile is not “set by government”, the employer can pay what they chose, but over 45p per mile (up to 10,000, it then drops to 20p per mile) is taxable and will be declared as a benefit in kind,

If you get less than 45p you can claim the difference x number of miles up to 10,000 miles (drops to 20p per mile above that).

Easiest way is work out the amount e.g. you do 5000 miles between 6 April one year and 5 April next, employer pays you 30p per mile, difference is 15p x 5000 miles = £75. Tax relief will be at your highest rate (likely 20%) of the £75.

@GeneLovesJezebel

I was just wondering if a company has to review it every so often.

The employer is not legally obligated to pay anything, in which case the claim for relief would be the whole 45p per mile.

Thanks for that.
How do I claim ?

**15p x 5000 = £750 - my typo

If you get less than 45p you can claim the difference x number of miles up to 10,000 miles (drops to 20p per mile above that).

You can claim tax relief on this difference, not claim this difference.

www.gov.uk/guidance/claim-income-tax-relief-for-your-employment-expenses-p87

You can claim up to 4 years back - so back to 6 April 2017 until 6 April 2022 when the back limit will be updated to 6 April 2018. Either use the form or write a very clear letter listing the difference in pence per mile x the miles for each year.

Head the letter “Job expenses - mileage claim” so it stands a good chance of being put in the right work queue inside the Revenue’s labarynthine systems.

Don’t be tempted to use one of the general tax rebate companies (often endorsed by the unions whom they assiduously court), they are all over Google but absolute vultures and you could be signing up for more than you realise.

@AlisonDonut

If you get less than 45p you can claim the difference x number of miles up to 10,000 miles (drops to 20p per mile above that).

You can claim tax relief on this difference, not claim this difference.

Which is exactly what I said in my post above: it was the last sentence - did you not get that far?

@GeneLovesJezebel

I don’t get 45p

What rates are you getting?

@LadyCatStark

Probably never 🙈 I’m public sector so definitely never. Yet we’ll all still be expected to afford to travel for work.

This thread is not about commuting costs, it’s about essential use of your car to enable you to carry out the duties of your employment, such as travelling between sites, customers, etc.

FYI the public sector are well reimbursed at the full 45p per mile for such journeys.

@Pollyphila I’m aware of that, it’s what I do every day 🤨. That’s why I said for work not to work. Jeez some people will argue with anything. The 45p a mile hasn’t gone up in the whole time I’ve been claiming mileage so if it was considered adequate when petrol prices were much lower, how can it continue to be adequate as prices go up and up?

Which is exactly what I said in my post above: it was the last sentence - did you not get that far?

Just correcting your actual sentence where you stated that you can claim the difference back. Which was incorrect.

It's been 45p for 20 years or more that said petrol fluctuates as does insurance. Petrol is very high now but it was almost as high 8/9 years ago, remember paying 140p. Car insurance is lower than 10 years ago so as I say it varies.

If prices don't settle quickly (which they may if the regime changes in Russia) then they will need to adjust the max amount without tax

@AlisonDonut

Which is exactly what I said in my post above: it was the last sentence - did you not get that far?

Just correcting your actual sentence where you stated that you can claim the difference back. Which was incorrect.

Once again, may I respectfully suggest you read the whole thread - every word.

Yes, you can claim the difference, the amount of difference is what is technically known as the claim. I then went on to explain what that claim translates into in terms of actual tax relief, assuming OP is only liable at the basic rate.

At no point did I say it is the difference which a taxpayer can claim back.

At no point did I say it is the difference which a taxpayer can claim back..

Also:

If you get less than 45p you can claim the difference x number of miles up to 10,000 miles (drops to 20p per mile above that).

So you did say that. I've been correcting this sentence for around 20 years, with other people who misquote it and get people's hopes up, on various other forums so we can do this all day if you want.

Probably best to take it on the chin and move on?

@AlisonDonut
Your user name is so apt.

I bet I can guess who you work for!

[quote Pollyphila]@AlisonDonut
Your user name is so apt.

I bet I can guess who you work for![/quote]
I took early retirement at 53. I work for nobody.

I am a fan of the band Alice Donut.

My role was managing millions of government money, and I know that you cannot claim back the difference between the mileage rate and the goverent mileage rate, but just tax relief on the difference.

Hope that helps, slinging personal comments isn't going to change that. As mentioned, just accept that you wrote a sentence in error and move on?

Yeah, I knew I was right!

No, you were wrong. You write wrong things and cannot cope with being picked up on them.

So you get personal.

I think you might need some therapy with that to look into why you can't just move on and have to go on the attack.

The maximum rate (45p up to 10000 miles, then 25p) is set by HMRC and has been the same since I first started claiming mileage more than 20 years ago.

If you're not getting the maximum, definitely challenge it, but there's no requirement that they change or review it, other than that which they need to do to retain staff.

Thanks. I’m currently trying to get copies of mileage for the last 5 years so I can claim.