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Where Taxpayers and Advisers Meet

tax on mileage payment

Joined:Thu Jul 07, 2022 9:07 am
tax on mileage payment

Postby emmapatricia0 » Thu Jul 07, 2022 9:11 am

Good morning
I work for my local council and get paid 56p a mile as I was TUPE from NHS 3 years ago.

Then council pay my claim monthly together with my salary and tax is paid on it. When I worked for the NHS I was not taxed on mileage claims. I have read some things online and its all a bit confusing!
Thanks Emma

Joined:Mon Mar 11, 2019 4:22 pm

Re: tax on mileage payment

Postby Jholm » Thu Jul 07, 2022 11:12 am

Anything over 45p/mile will always be taxable

Joined:Wed Aug 02, 2017 9:09 pm

Re: tax on mileage payment

Postby darthblingbling » Thu Jul 07, 2022 1:42 pm

Anything over 45p (or 25p per mile if annual business mileage goes over 10p) is taxable.

For NIC the rate is 45p for all business miles. The excess is subject to Class 1 NIC.

It's a quirky one as I believe the profit is put on your P11D for tax purposes, but the Class 1 NIC is collected via the payroll.

The rates have never been higher than 45p. So either your NHS trust handled it incorrectly or you may have missed it. You may not have been aware that it was put on a P11D and the tax may have been collected through your tax code.

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