Using private car for business use/business mileage.

[JohnnyPacket]

I'm hoping that this is the correct forum, apologies if it is not!

 

My wife works as a carer using her own vehicle to visit her employer's clients in their own homes - for this she is paid .35p per mile (the remaining.10p per mile is claimed via MAR) this is the current allowance and that is fair and well.

 

The part that I disagree with is that my wife's employers state that "you may be paid a mileage allowance, if and when applicable, if you are required to work outside a two mile radius of the offices town whilst visiting clients on business", bearing in mind that approximately 60% of her calls are within the town and 40% are outside of the 'two mile radius' I think this is unjust and certainly unfair. I appreciate that she cannot claim the travel from home to her first client or to the office and likewise for her return home journey but I feel she is being taken for a fool and is forced not to be able to claim for business travel she is entitled to. Does anyone have a legal take on this (if there in fact is one)?

Edited July 2, 2012 by JohnnyPacket

[Gbarbm]

Unfortunately whilst I totally agree with you, the employer can pay as much (or as little) mileage allowance as they wish!

Now, it's not all doom and gloom, if your wife downloads form P87 from HMRC website, she can claim the business mileage for the journeys not covered by the employer and HMRC will refund the amounts direct to your wife for the earlier years (you

Can claim back for the last 4 years) and will include the amount due for 2012/13 onwards as an allowance in your wifes tax code thereby reducing the tax paid on her wages

[JohnnyPacket]

Thanks for the response Gbarbm, much appreciated.

Am I correct in assuming then that she can claim all the mileage NOT currently paid for by her employer direct from HMRC? Am I also correct in assuming that HMRC will pay her .45p per mile (for the extra unclaimed mileage) or would they pay her an allowance towards it?

[Gbarbm]

Hi

The authorised mileage allowance payments (AMAPs) are .45p for the first 10,000 business miles and .25p thereafter where an employee uses their own car for business purposes.

These rates cover not only the fuel but the wear and tear etc on the vehicle.

The reason for the reduction from .45p to .25p is that some costs do not increase with increased mileage such as road tax etc

If the employer paid say .20p a mile, the employee can claim the additional .25p a mile (.45 - .20) up to 10,000 business miles and .5p thereafter via form P87