Tax on mileage payments

[nku]

Hi, I've just received my first payslip from a new company & the mileage is down as being taxable. In my previous job it wasn't taxable. Surely mileage shouldn't be taxable as it is basically an expense? Does anyone know? Thanks

[factor-fiction]

A few questions:

What mileage is it- is it for travel to/from work or for business mileage to/from other locations during the course of your work.

What is the mileage rate in terms of pence/mile and how many miles have you done this tax year? The HMRC agreed rate for bona-fide businessmileage is around 40p a mile- anything above that is taxable. And that figure only applies for the first few thousand miles- after that the tax free permitted rate falls significantly.

Have you checked the HMRC website- the details are on there.

[nku]

It's for to & from work, although not a 'permanent place of work'. I do care work for an agency.

The rate is 24 per mile.

Not sure how many miles this tax year, but none was taxable in previous job. This is first pay from this company.

[factor-fiction]

It isn't normal for people to get expenses for travelling to and from work and the HMRC will be reluctant to let such expenses be paid tax free, although it is complicated in cases such as yours.

Where is your normal place of work, how often do you go there, and is the daily journey to/from the actual work locations more or less than this distance?

Buildersmate will know about this topic.

But I think it's worth asking your manager.

[Tom Braider]

This isn't a complete answer - it's a complex business - but an agency can't usually treat this kind of travel as a tax free expense unless they can treat their premises as your place of work. And they can't usually do that unless they treat your work for them as employment - which agency work isn't, even though it's on PAYE. Your engagement with the agency has to be accepted by HMRC as an "overarching contract of employment" - and it may very well not be, even if the agency wants it to be. And the agency may not want this anyway, because it means they have to take on all the other responsibilities of an employer. You'll have to query the position with the agency, but I fear you're stuck with it.

[buildersmate]

I agree with Tom on this one. HMRC allow for 'permanent places of work' and 'temporary places of work' and there are complicated rules when travelling between them and maximum lengths of time involved.
But in your situation HMRC are unlikely to allow the agency office as your place of work.