MegaSack DRAW - This year's winner is user - rgwb
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Please help, I’ve been talking with our HR [s]waste of space[/s] manager and I’m really confused.
My usual place of work is an office about 40 miles from home, but I’m often required to visit clients premises’ (the cost of which is charged to the client).
If I drive straight from home to a client's site I’ve been instructed to charge the full mileage from the office (use route finder to work it out).
In an instance where I drive past the office I’d charege the mileage I do from the office to site and back and pay the equivalent of my commute myself, however If I drive away from the office I’ll only drive the distance from home to site and back but have been instructed to charge the mileage from the office, so I’m charging for 80 miles that I’ve not driven, which seems a bit fraudulent to me!?
HR claimed that it’s all to do with HMRC and tax, but haven’t really explained it and I still don’t really know what I should be doing, I don’t want to be left out of pocket, but also don’t want to be doing anything that could come back and bite me on the arse, please help.
He is wrong. Subtract your normal mileage and claim the rest.
Claim everything & make up the numbers
Isn't that what everyone does? 😉
According to all advice I've been given Onion is correct on this
I think technically your company will charge the customer the full amount from their base, as its a resource they are providing not you specifically. And as regards to what you claim, get a response on email from HR and do as they tell you, then if you get any comeback you have proof of what was said. Very unlikely they will ever check though. Ive been claiming mileage for years with no checks at all, as long as you dont take liberties! 😀
For business / client billing purposes, do what your HR man has said.
When dealing with HMRC do what Onion has said.
The 2 are different, but not that difficult to work out.
Do what you're Waste of Space Manager says.
How on earth will HMRC ever know exactly how much fuel you've used for business travel? If they ever did check you will have a complete set of expense claims forms to back you up!
I'm asuming from your post that you don't travel as part of a sales role? haha.
I agree, I subtract my normal commuting distance off any claims.
A bit of a hi-jack, but when I put in a mileage claim, I am asked to provide VAT receipts for the full amount claimed, which is obviously more than the actual money I spend on fuel for that journey (rate is 40p/mile). Does anybody else have to do this?
double post
The 40p/mile is not just there to cover the cost of the fuel but also wear and tear on your vehicle and a contribution to your insurance, you should have upgraded to Business Class 1 see.
Business class 1? Am I missing something?
My thoughts exactly about depreciation, insurance, etc.
Business Class 1 Insurance covers you to travel to more than one place of work or to travel as part of your job. If you travel a lot check this out with your insurer as some standard policies will only cover you for social travelling and a commute to one place of work.
Brycey - with logic like that you must be an Accountant hmmmmmmm
Ah ok, think I'm covered for that Yeti. I have two places of work and go off around and about quite a bit for work too.
Is a pain trying to collect enough receipts some months though!
On a par! On a serious note the HMRC have never checked anything of mine in 8 years and hundreds of thousands of miles - not that there would be a problem if they did. Depending on your current tax code and mileage you can claim tax relief as well if you are paid less than the recommended government rates. I would get the insurance sorted though as someone went in to me last week and it was one of the first things I was asked.
Uplift +1
so long as your company is happy, HMRC (according to colleagues who have been driving Company cars a lot longer than me) look for something like 90/10 or 85/15 business miles/personal miles. colleagues who have claimed 95/5 HAVE been investigated to my knowledge.
I understand that i can claim ALL my miles if i drive straight to a client, until i reach the office. If i then drive home via a client, i claim all my miles - thats what i've been doing for two and and half years and no problems.
HTH
daves mum
The receipts allow your employer to reclaim VAT element of the amount they pay you. I'm supposed to save mine but never do
You need class 1 business insurance (I have it). Just make sure that when you talk to your insurance company you tell them that you are travelling to booked appointments, meetings, conferences. Otherwise they assume you are some sort of door-to-door widget salesman and the insurance is unbelieveable!