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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13885
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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What are the mileage allowances for an Employee with their

Customer Question

What are the mileage allowances for an Employee with their own car?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question
The current HMRC amounts are 45p a mile for the first 10,000 business miles and 25p a mile thereafter
Thanks
Sam
Customer: replied 2 years ago.

Hi Sam,

That is for an employed person. Do I have to charge those rates or can I charge less?

Expert:  Sam replied 2 years ago.
Hi
These are the employee rates and what they can claim from HMRC for using their own vehicle (its the same figures for employees and self employed individuals when they use their own vehicle.
You asked for employee rates?
Thanks
Sam
Customer: replied 2 years ago.

Thank you but do I have to paythose rates or can I paylower rates which I set?

Expert:  Sam replied 2 years ago.

Hi Simon

Link here detailing the rates for employees (from the government website to verify the information I have provided) Scroll down to Employee vehicles - mileage payments for business travel https://www.gov.uk/rates-and-thresholds-for-employers-2014-to-2015#employee-vehicles-mileage-payments-for-business-travel

I assume you are the employer, in which case you pay from NIL up to whatever you want, but if you exceed the HMRC rates (45p a mile for the first 10000 miles and 25p a mile thereafter) then you would need to complete a form P11d - Expenses and Benefits to declare the excess amount.

But if you pay less the set rates, then the employee can claim the difference back from HMRC either via an expenses claim P87 or via self assessment tax return.

Hope that helps

Thanks

Sam

Expert:  Sam replied 2 years ago.
Hi Simon

I assume you are the employer and the information provided was satisfactory, or did you have any follow up questions?

Thanks

Sam

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