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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 47868
Experience:  Qualified Solicitor - Please start your question with 'For Ben Jones'
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As an employer do we have to pay the 'advised' mileage rates

Resolved Question:

As an employer do we have to pay the 'advised' mileage rates issued by gov.uk?
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.
Hello, my name is***** am a solicitor on this site and it is my pleasure to assist you with your question today. What do you wish to pay instead?
Customer: replied 1 year ago.

Hi Ben

we wish to pay a straight 10p for company car drivers, those with car allowance and for any engine

thanks

Vicky

Expert:  Ben Jones replied 1 year ago.
You are free to pay your employees whatever rates you like in relation to mileage. The recommended rates are there to give you an amount which would make your tax position easy because if you pay them these rates then you would not have to declare these amounts to HMRC or pay or deduct taxes in relation to them.
If you were to pay more than these approved rates then you would generally have to add this amount to the employee’s wages and deduct and pay tax on the amount as normal. If you were paying less than the approved amounts then it just means you do not have to report this to HMRC , although the employee may be able to get tax relief on the difference. The Gov.uk site specifically states about this:
“If you pay below the approved amounts, you won’t have to report to HMRC or pay tax, but:
• your employee will be able to get tax relief (called Mileage Allowance Relief, or MAR) on the unused balance of the approved amount
• you can make separate optional reports to HMRC of any such unused balances under a scheme called the Mileage Allowance Relief Optional Reporting Scheme (MARORS) - contact your HMRC office to join the scheme”
I trust this has answered your query. I would be grateful if you could please take a second to leave a positive rating (selecting 3, 4 or 5 starts at the top of the page). If for any reason you are unhappy with my response or if you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
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