Neil Said:

Agency Worker - Business Mileage?

We Answered:

The rules are fairly simple. You can be paid up to a maximum 40 pence per mile, up to 10.000 miles a year. Over 10.000 miles a year the maximum rate drops to 25 pence per mile.

No tax is payable on these mileage payments. Its only if you are paid more than 40 pence per mile, that tax is due.

So in your situation you should not be paying tax.

No you cannot claim the other 10 pence per mile from HMRC. They are in the business of collecting tax, not paying you money. The rules state that the maximum is 40 pence per mile, this does not mean you ae entitled to 40 pence. You get paid what you get paid, simples.

No you cannot claim 40 pence per mile from HMRC on assignments that you do not receive a mileage payment.

By definition, no payment has been made for mileage, so as above HMRC are not in the business of giving you money. There is no rule that states you have to be paid anything for business miles, if you get paid nothing, tough.

If your employer is deducting tax on your mileage allowance, they are incorrect, and they should not be doing it. Just a point on this, you have to ensure that the mileage allowance is showing on your payslip, as a separate item, ie Mileage Allowance, and they are not putting Your wages in with it, and showing only one payment. Mileage allowance must be shown as a separate payment.

Agency workers are treated the same as all other workers.

Hope the above helps.