Questions from our Forum – 28/11/11

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Forum Post

An employer wants to pay a lump sum amount in respect of business mileage every month.  This would be subject to tax and NICs.  However, if he changes the business mileage reimbursement rate each month so that the total comes to this lump sum amount, is this OK to go through the payroll as non-taxable?

I have a client who plans to pay a fixed sum for business miles each month, eg £30. By definition, I think that makes it a lump payment and fully taxable and Niable.  However, this lump sum is well below what the client could pay if he used the 45p per mile rate.  So the client intends to keep full records and change the mileage rate each month so that it works out as £30!

More ….

Further Questions: 

1. In the case of a redundancy, does the final payment to the employee have to be made on their last day with the company, or is the normal payday OK?
2. Can a personal arrangement between a council and an employee in receipt of a CTAEO override the CTAOE rules themselves?
3. When calculating the 12 week average hourly rate, do you use a standard week where there is no absence or is it adjusted if there is absence in the week?

Tags: 12 week average, CTAEO, Mileage allowance, redundancy, travel expenses

This entry was posted on Sunday, November 27th, 2011 at 12:00 and is filed under Forum. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.