Mileage Policy 1 July 2014
Mileage Policy
Revised July 2014
Mileage Policy 2 July 2014
Table of Contents
1. Mileage Rates ..................................................................................................................... 3
2. Mileage Claim Forms .......................................................................................................... 3
3. VAT Receipts ...................................................................................................................... 3
4. Passenger Rates ................................................................................................................ 4
5. Home to Work Travel .......................................................................................................... 4
6. Business Travel .................................................................................................................. 4
7. Travel Time......................................................................................................................... 4
8. College Travel .................................................................................................................... 5
9. Bicycle Rates ...................................................................................................................... 5
10. Motorbike Rates ................................................................................................................. 5
11. Abuse of fraudulent use of the scheme .............................................................................. 5
Mileage Policy 3 July 2014
The mileage policy will apply to all Council employees and will be applied fairly and
consistently.
1. Mileage Rates
1.1. All employees will be paid the same mileage rates. The rates that will be applied are
those provided by HM Revenue and Customs (HMRC). The Council will apply new
rates in line with HMRC rates changes.
The rates are as follows:
45p per mile for the first 10,000 business miles
25p per mile over 10,000 business miles
1.2. The mileage rates we are applying will not be classed as taxable benefits; therefore it
will not be necessary for P11D’s to be sent to HMRC on your behalf to adjust your tax
code in respect of business mileage.
2. Mileage Claim Forms
2.1. All employees who have undertaken business mileage should complete the standard
mileage claim form.
The form must be correctly completed, checked and signed by the manager and
authorised signatory before submission to HR/Payroll.
Please note: Payroll must be in receipt of a valid form in order to make a payment.
2.2. Mileage claims should be claimed monthly in arrears to assist with budget control.
Claims must reach HR/Payroll by the Payroll shared service deadlines to ensure
payment that month.
Please note: Mileage claim forms submitted over 3 months in arrears will not be paid
unless there are exceptional circumstances. For Example, mileage is undertaken in
November 2013 therefore the claim form must be authorised by the line manager and
sent to Payroll by 28 February 2014.
3. VAT Receipts
3.1. HM Revenues and Customs (HMRC) require employees and elected members to
provide a VAT fuel receipt to cover the amount of VAT within the mileage claim. It is
not sufficient to produce a credit or debit card receipt, individuals will have to
specifically request a VAT receipt when making fuel purchases.
3.2. A valid VAT receipt must support all mileage claims. This receipt should include, as a
minimum, the VAT registration number and the monetary value of the fuel purchased.
The receipt cannot be retrospective, but HMRC will accept that receipts for petrol
Mileage Policy 4 July 2014
bought at the end of one month can support a mileage claim in the next month, if
business miles undertaken support the petrol consumption.
If the claim form does not have the appropriate VAT receipt then the claim will be paid
less the amount of VAT the Council could have claimed from HM Revenue and
Customs.
4. Passenger Rates
4.1. If you are a driver and you carry passengers to a business meeting the HMRC rate for
passengers will be applied. It is currently 5p per mile for each passenger.
5. Home to Work Travel
5.1. The Council does not make payments for travel from home to the employee’s normal
place of work.
5.2. If car sharing and the driver, due to unforeseen circumstances, is unable to offer the
return trip, then an ‘emergency lift home’ can be arranged through the Council’s
Travel for Work budget, at the discretion of the passenger’s manager.
6. Business Travel
6.1. If you chose to travel to your meeting place/site to or from home the only miles that
can be claimed are the business miles incurred and not the home to work miles
included in your journey.
Example: if you travel from your home to your meeting place and this is 20 miles and
the miles from home to work is 15 miles you can only claim 5 business miles. The
same principle applies when you travel home from meeting place/site.
7. Travel Time
7.1. Arrangements for recording working time when an officer goes straight from home to
site at the beginning of the working day, and straight from site to home at the end of
the working day:
• Travelling from home to site:
The working day will start when the officer reaches the site. However if the site is
further than the normal place of work, then the working day will start when the
employee would have reached their normal place of work.
• Travelling from site to home:
The working day will end when the employee actually arrives home or would have
arrived at their normal place of work, whichever is the less.
Mileage Policy 5 July 2014
8. College Travel
8.1. If you travel to college on a regular basis, you are expected to travel in the most cost
effective manner to the Council. This should be, wherever possible, using public
transport, or where not practical to do so, using a private vehicle claiming the public
transport rate, which is currently 23p per mile. These miles should be claimed using a
Pro-Forma and paid via Creditors, not Payroll.
9. Bicycle Rates
9.1. The HMRC rate for business mileage will be applied. It is currently 20p per mile.
10. Motorbike Rates
10.1. The HMRC rate for business mileage will be applied. It is currently 24p per mile.
11. Abuse of fraudulent use of the scheme
11.1. The Council’s disciplinary and Anti-Fraud policies and procedures will apply in the
case of any employee found to be abusing the Mileage Policy.
