Travel Allowance - What rate to use to claim back (private travel)?

UK Discussion in 'General Accountancy Discussion' started by AlexSS, Apr 20, 2017.

  1. AlexSS

    AlexSS

    Joined:
    Apr 20, 2017
    Messages:
    1
    Likes Received:
    0
    I am wondering if someone can help me. I am just taking over a finance function and I am trying to verify rates used to claim back fuel.

    My new company has recently moved depots and we have an employee that uses his own car to travel in to work. It has been agreed that he is reimbursed for the fuel used for this journey as a perk to move depots. It's been agreed that claims would be based on mileage. I am aware this is a benefit in kind so he will get taxed on it but the Question is ...........Does he claim @ 45p a mile or 11p a mile? as this is not business fuel allowance I am a little unsure what is the right rate.

    I am also now questioning whether it should be just taxed....per hmrc due to last sub heading on private travel.....https://www.gov.uk/expenses-and-benefits-travel/what-to-report-and-pay
     
    AlexSS, Apr 20, 2017
    #1
    1. Advertisements

  2. AlexSS

    Becky Administrator

    Joined:
    Aug 26, 2011
    Messages:
    408
    Likes Received:
    40
    What the company pays him is up to the company, but you are right that it will be taxable because it is ordinary commuting. The 45p rate is a flat rate that is usually used when an employee is using their own car (to reflect both fuel and wear & tear to the vehicle) and the lower rate tends to be used when an employee is just being reimbursed for fuel (eg if using a company car). In short, you can pay him whatever you like as long as it is treated as taxable income, so it depends on what has been agreed with the employee.
     
    Becky, Apr 21, 2017
    #2
    1. Advertisements

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.
Similar Threads
  1. Doug Ramage
    Replies:
    0
    Views:
    563
    Doug Ramage
    Apr 1, 2004
  2. nospam@thank-you.com

    Business travel in a private aircraft

    nospam@thank-you.com, Jul 17, 2006, in forum: UK Accountancy
    Replies:
    3
    Views:
    537
  3. Jon.B.Thompson

    Private Membership To Gain Private Placements, Pre IPO's

    Jon.B.Thompson, Jun 7, 2007, in forum: Microsoft Money
    Replies:
    0
    Views:
    672
    Jon.B.Thompson
    Jun 7, 2007
  4. paul_nichox@hotmail.com
    Replies:
    7
    Views:
    611
  5. Jon.B.Thompson
    Replies:
    0
    Views:
    532
    Jon.B.Thompson
    Jun 7, 2007
  6. Robin T Cox
    Replies:
    0
    Views:
    441
    Robin T Cox
    Jun 21, 2007
  7. the investor
    Replies:
    2
    Views:
    775
    the investor
    Jan 10, 2012
  8. ausairman

    Australia why is interest rate swaps added to variable rate debt to get net variable rate?

    ausairman, Jan 29, 2012, in forum: General Accountancy Discussion
    Replies:
    3
    Views:
    2,253
    bklynboy
    Jan 29, 2012
Loading...