Dispensation - mileage allowance

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LouiseR
LouiseR Registered Posts: 59 Regular contributor ⭐
in General accounting discussion
Hi

I have just received a dispensation for a client which I applied for, in the disallowables it says that business mileage allowance is now not allowed in the scope of any dispensations.

Just wondered if anyone else had come across this.

Thanks

Louise

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  • Jmann
    Jmann Registered Posts: 68 Regular contributor ⭐
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    You do not require dispensation for mileage allowance. And they would not give one.

    As long as you as per authorise mileage rate then you not need to worry about reporting.

    If you pay more than authorise rate then you have to report on to P11D and class1a and tax is payable.

    John
  • Psyche
    Psyche Registered Posts: 187 Dedicated contributor 🦉
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    Yes this means that you need to report any taxable mileage (taxable is any rate that is over 40p per mile -- for instance, if the employee is reimbursed at 55p per mile then 40p is tax free but 15p is taxable) on the P11D.
  • payrollpro
    payrollpro Registered Posts: 427 Dedicated contributor 🦉
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    Louise,

    What you should ahve been told is that booklet 490 now covers all travel and subsistence and as long as you satisfy the criteria laid down here there is no requirement for a dispensation, it goes a bit further than the 40p/25p a mile.

    Payrollpro

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