The Bookkeepers.Network (BKN)

Post Info TOPIC: Mileage Allowance - not complying with HMRC rates


Member

Status: Offline
Posts: 5
Date:
Mileage Allowance - not complying with HMRC rates


Hi

My understanding of HMRC rates for mileage using own car for business use is as follows:

1) The 45p per mile rate is the MAXIMUM payable by an employer (unless you want to incur BIK).

2) An employer can well pay less than this, if agreed with the employee - without downward limit.

Is this correct ?

Assuming I am correct, does anyone have a link to anything I can use for reference ?

Thanks!



__________________


Master Book-keeper

Status: Offline
Posts: 7206
Date:

So hows about an intro before we start. We always ask newbies!

Usual stuff - what prof body do you belong to, do you work for yourself or in a practice/ firm, are you a bookkeeper or accountant, what qualifications, how long in role, where up to in your studies-what exams passed/with what body/in midst of doing, where based, what you did before this role? That sort of thing. Helps get to know you but also how best to pitch answers.

Pease add your first name so that it appears under the signature bar on your posts? Saves everyone looking it up each time!! (Edit profile --->signatures)

__________________

Joanne

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Member

Status: Offline
Posts: 5
Date:

Hi Joanne

I do apologise - please forgive the omissions!

I am a QBE, working for a private sector company. Worked in and around Finance for 20 years, doing various roles, currently look after various business functions not just finance.

I'm not looking for definitive 'formally relied upon' answers, just a sounding board for potential grey areas, to act as a point of reference on things as/when they come up.

(I recently looked at posts about depreciation of IT Hardware for instance)

Thanks

Peter

__________________


Master Book-keeper

Status: Offline
Posts: 7206
Date:

Hi Peter
Welcome to the madhouse.

Be careful what you rely on here - quite a lot is now out of date, so I wouldnt go back more than 12 months for anything tax related. Indeed probably not for Accountancy related either given the IAS/IFRS changes etc.

I always say that if you want tax information then you should look at the specific law, but in this instance Im going to start you off with HMRC manuals. Just note - HMRC give 'guidance', they are quite often wrong as they interpret the law to suit their needs, rather than accurately.

But its a start. Note the employee position if you pay them less than AMAPS. www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31330
www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31240

__________________

Joanne

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Master Book-keeper

Status: Offline
Posts: 2673
Date:

Hi Peter, welcome to the forum.



__________________

John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

Status: Offline
Posts: 661
Date:

Welcome to the forum Peter



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Member

Status: Offline
Posts: 5
Date:

Thank you all.

__________________


Member

Status: Offline
Posts: 5
Date:

OK so have I got this right?

1) Company re-imburses at whatever rate it and the employee agree.

2) EE then claims tax relief at the rate of the difference between this rate and the AMAPS.

Doesn't make sense to me from the HMRC point of view - I must be missing something......

__________________



Member

Status: Offline
Posts: 5
Date:

ah, I think I have thought through my own answer - of course the tax relief is only at the difference x the individuals tax rate and therefore a fraction of gross difference.

Therefore Tax Man is giving a token, but the employee is ultimately worse off?

__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  

2018 The Bookkeepers Network (BKN). All Rights Reserved. The Bookkeepers Network (BKN) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Bookkeepers Network and BKN are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Bookkeepers Network. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Bookkeepers Network. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: info@bookkeepers.network or info@bookcert.co.uk.

Privacy & Cookie Policy