[purrfect cleaning]

what would be a reasonable allowance per mile for a person using their own car for a job, usualy we supply our girls with a van, but due to being busy this person is using her own car for the early morning job, we are going to give her an allowance but are unsure what the going rate is. any help we  would be gratful. thanks paula.

[DREAM CLEAN]

Hi Paula,

The goverment say you should give them 40p mile which is  joke cos my lady has a 1lt nissan micra and can do a round trip of 50miles.


hope that helps

Ni ck

[purrfect cleaning]

  how much! thanks nick i think i will have to get her to use a van in future, paula.

[PremierPDS]

Hi

The way the IR calcualte mileage is as follows and I always use the same rules which are: Employees cannot claim mileage from their home to their first job or from their last job to home. This is because everybody has to make some form of journey to and from work everyday whether it be by public transport or your own means of transport. Employees are only entitled to claim mileage for the jobs in between which is then classed as an additional work related expense. I only make exceptions to this rule if the mileage is excessive. It's up to you where you draw the line and what you class as excessive. I usually draw a line at the 15 mile mark and anything over this I'll pay them mileage.

Alternatively, don't pay any mileage and get them to claim their mileage back from the IR at the end of the year. This is sometimes a sore point with employees however as they are often on low wages to begin with and have to foot the bill themselves until they can claim it back at the end of the tax year.

Although the IR pay up to 40p per mile, you are under no obligation to pay this much and where I run my business the going rate is about 15p per mile. Hope this helps.

Nickie x

[martin19842]

hi there

you need to make sure that the car is covered under the current policy, for business use, otherwise you could have a problem if there was an accident , on a business journey.

regards

martin

[PremierPDS]

tell her to get business use added to her own insurance. This usually costs next to nothing or a very small additional fee but should cost no more than 10 quid and saves you a load of hassle too. Always take a photocopy when it's added or ask for proof that this has been added to her insurance. If she asks the insurance company they will usually forward confirmation in writing.

Nickie x

[purrfect cleaning]

thank you, you have been very helpful. her car is covered by buisness use as she was self employed for a while, but now works for us as an employee, 15p a mile seems to be more realistic, many thanks, paula.

[Matthew Speakman]

if you do pay her 15p. it is possible for her to claim and extra 25p from the tax man at the end of the tax year. but to do this she will need proof of how much she has been paid by you

[PremierPDS]

Trust me with this one, I've worn the T-shirt several times and the IR find this far far too difficult to take on board. It proves nothing but a headache and in my experience she best either claiming it all back from the IR or claiming the 15p off you and writing off the rest. This would be the cleaners headache however and not yours but as long as she keeps good records, sticks to her guns and won't be fobbed off easily she might get it back in about 5 years lol.

Nickie x

[purrfect cleaning]

hi nicki have noticed that this is a new venture for you, how have you found things, is it all going well. ps thank you for your advise