Mileage allowance

Just a question of a similar nature to the original post.
I have read in the past that where a vehicle is at a place other than its designated operating centre, then any travel to or from this “place” cannot be classed as part of a rest period and is therefore classed as other work and should be recorded as such. Would I be mistaken in concluding that the cost borne to any individuals engaged in this practice using their own means of transport as part of their job remit would be entitled to some kind of tax exemption for travel costs incurred? I know this is a question for the HMRC but any input from fellow members would be great before I take it up with them. Happy Days :slight_smile:

hipsway:
Would I be mistaken in concluding that the cost borne to any individuals engaged in this practice using their own means of transport as part of their job remit would be entitled to some kind of tax exemption for travel costs incurred? I know this is a question for the HMRC but any input from fellow members would be great before I take it up with them. Happy Days :slight_smile:

If you’re travelling directly from home to a place other than your normal place of work to take charge of a vehicle then you are entitled to claim Approve Mileage Allowance Payments on that journey.

Paul

Winseer:
A workplace is considered “temporary” if you spend less than 40% of your working time there.
Your travel from home to the agency is considered the “base mileage”.
You then subtract this from whatever mileage it is beyond that to the temporary employment location.

Eg. Home to Agency=9 miles
Agency puts you into Blogg’s & co for 3 months of the year. 29 miles away (from YOUR postcode not the agency’s - otherwise they wouldn’t be asking for your postcode on your expenses form right?)

Your contract at bloggs & co is 13 weeks 5 days monday-friday, and you’ll be getting there in your own transport.
The other 9 months of the year will be spent with at least two other clients, thus making it unlikely that no one client gets more than 40% of your total hours.

Mileage claimable is 20 miles (29-9) each way 5 days a week, or 200 miles a week x 13 weeks @ 40p per mile I believe.
It is not an amount of money given to you (the £1040) but your gross for tax earnings are reduced by £1040 instead, meaning you pay about £250 less tax a year (only £5 a week :frowning: ) and are entitled to a bit extra tax credits (if you get those) as well.

Your trip to the agency or any firm where you spend more than 40% of your working time is considered “commuting by choice” and is NOT claimable. Those agencys (mostly the Umbrella ones) that overclaim for mileage such as this will have a nasty tax bills winging their way to their drivers in the not too distant future.

This is from the horse’s mouth at HMRC by the way. :grimacing:

It sounds like someone is getting confused that you actually WORK at the agency.

Its 45p a mile now and i will be having a query when i do my tax return this year as I’m self-employed but i work for agencies on a paye basis but have to travel to and from there work place 32 miles a day .