Can I claim mileage from HMRC as a passenger?

[harper75]

Hello

I have had a few people tell me I can claim mileage from HMRC but have no idea how I go about doing this. Basically I travel all over the country doing my job in a car where I am a passenger. I contribute towards petrol but don't get this back in the form of expenses from my employer. Anyway like I say quite a few people have said I can claim as they do so just want to know if this is true?

Thanks

Paul

[King_Maker]

What are the exact circumstances?

Is one of your work colleagues driving and claiming mileage from your employer?

[harper75]

Yes the driver who owns the car claims back some mileage from the company. I think it is 20p per mile after 70 miles.

[King_Maker]

Your colleague is entitled to claim, tax free, 45p for the first 10,000 business miles and 25p per mile thereafter.

In addition, the employer can pay 5p per business mile for each passenger. Such payments are exempt from tax, so cannot be claimed if not actually paid.

I am not sure why you need to make a contribution. But that is between you and your colleague.

It may be that your employer needs to review how business mileage is paid.

[AvocadoK]

To answer the question directly, the tax system specifically prohibits a claim for tax relief by the passenger - s229(4) Income (Earnings & Pension) Act 2003 refers.

[section 44]

No. s229(4) is an exception, to the exemption from mileage payments being taxable.

In principle it could be capable of being a deductible expense.

[LozaACCS]

I do not really understand the last post.

I believe
AK arrives at the right answer but misquotes the legislation.
Section 44 is incorrect in stating that a deduction is possible.

The relevant legislation is S233/4 ITEPA 2003.
The section operates as an exemption not as a relief.
S233(1)(a) excludes liability to income tax where the EE receives mileage allowance payments (this excludes passenger payments S229 (2))
Section 234 limits the relief (to the driver) at 5p per mile.
So if the driver is paid 10p per mile , he is taxable on 5p per mile.
If the driver is paid less than 5p per mile he is not able to claim relief.

The passenger has no direct involvement in a claim.

[AvocadoK]

The passenger has no direct involvement in a claim.

Loza,
Going back to the OP's original post, the question was, can the passenger make a claim. I think we agree that he cannot. As you say, s234 limits relief to the driver, on the extra payment claimable for a passenger. But the query was not about a claim by the driver, so I don't think s234 is relevant, do you?

Regards
AK

[section 44]

The relevant legislation is S233/4 ITEPA 2003.

Is this exhaustive? Could a deduction be available for expenses that are wholly, exclusively and necessary?

[harper75]

Thanks for the feedback. Shame I can't claim for any mileage though. But thanks.