Tax on mileage

[Babooshka1234]

Hi there, I am a PA and have to run small erands now and again which probably only amount to roughly 25-30 miles a month. I can claim for the mileage and wear and tear on my own car but it gets paid to me at the end of the month in my payslip and I then pay tax on it. Is this right?

You shouldn’t pay tax on up to 45p per mile and up to 10,000 miles per year. You can claim it back from HMRC if your employer can’t fix that.

My expenses get paid to me via my payslip but they are categorised separately so I don't pay tax on them. I've never worked anywhere where you pay tax on your expenses and then claim.it back.

Why do you think you're paying tax on the expenses? Unless your payroll department doesn't know how to do their job that's extremely unlikely

Your employer should be following the taxing rules and as most payroll software has the ability to create and mark a pay element as non taxable and/or non NIable there should not be a issue calculating the amounts. Plus yout travel time is not milage but should be paid for.
https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax

Thank you everyone for your help, the irony is I dont have a lot of confidence in the lady who runs our accounts! I'll see if I can claim something back from HMRC and going forward perhaps insist on using someone's company car...or find another job! :-)

To ask again, how are you sure it's been taxed? If it was the March payroll ask for it be corrected and you to be paid the difference

No need to get another job, just make sure she adds as expenses on the payroll in future

It’s absolutely normal for expenses to be shown on a payslip but you shouldn’t be paying tax on them. Most places pay the HMRC accepted rate of 45p per mile.