Does my employer have to pay me mileage UK?

Answered: Does my employer have to pay me mileage?

Here is some general guidance for the question, ‘Does my employer have to pay me mileage UK’?

In a nutshell, it depends instead on the rules that the employer says in its policies. However, if you use your own car for a business trip, you can claim the difference between what your employer pays you and the standard mileage rates indicated by the Inland Revenue when you file your tax return. In other words, if your employer only pays you 30p per mile, you can claim 10p per mile of income when you file your tax return.

*Exact figures may be subject to change yearly.


What are mileage allocation payments?

When your employee is using their own vehicles for commercial purposes, you can pay Mileage Payments to cover some of the associated costs. Each year, you can pay a certain amount of MAP to your employee, and as long as the total does not exceed the ‘approved amount’, you do not have to report this to HM Revenue and Customs (HMRC).  Making the whole process much easier. Accessing the allowed amount is quite simple, but multiply thousands of business trips per year according to the rate per thousand of your vehicle.

If the amount you pay your employee exceeds the approved amount, you must:

  • a form on the P11D form, the form that covers all benefits paid in the year
  • add something above the approved amount “to the employee’s salary, and deduct and pay taxes normally


Make the mileage claim work for everyone in the business

In addition to most tax-free benefits, MAPS means working with you to explore the data and plan for the best result. If your staff spends a lot of time using their own vehicles, the benefit of paying their mileage is invaluable to them (and it is also a good business practice for the company in general).

And if you have paid your own mileage without any refund (in which you break down your taxes), you can cancel (no longer pay taxes) on these mileage expenses. But by stating that you are being reimbursed, you certainly cannot cancel that mileage cost. So, if they require you to pay the mileage (so you can’t pay your taxes) but do it with your rate, you have twice as much without lubricant. With his response that he cuts his taxes almost like saying “I understand that we mentioned that he would pay 50K for 12 months, but by paying 20K for only 12 months, he is saving it without paying taxes for those different 30Ks.”

Does my employer have to pay me mileage UK?  With experience, some client contract says that they pay mileage reimbursements but that they are paying him for his commissions, speak to a tax expert to claim your tax refund if you think you are owed money back for your mileage.

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