Employment Benefits: Mileage Payments

Employment Benefit Mileage

For those submitting P11Ds, 6 July 2019 will mark the deadline for reporting relevant benefits and expenses provided in 2018/19.

It is important to ensure that any mileage payments made to directors and employees are within the HMRC approved rates if you want to avoid a benefit in kind. For business travel in an employee’s own vehicle, mileage can be paid up to 45p per mile for the first 10,000 miles in the tax year, and 25p per mile thereafter.

If an employee has a company car but pays for all the fuel, they can claim for business miles at the advisory fuel rates set by HMRC. These are updated each quarter.

Detailed mileage logs must be kept showing all business journeys, as HMRC can be especially stringent in this area; and remember – home to office or any other permanent workplace does not qualify as business travel.

If you would like more information on employment benefits and P11Ds please contact us on 01633 871122.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

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