CPA Bulletin

Taxation of Travel Expenses whenWorking at Temporary Sites From the 6th April 2002, employers did not need to apply for a dispensation for mileage allowance payments for operators travelling between home and the site in / on their own vehicle. It could NOT be used when the operator is travelling to their designated depot base. Payments are tax-free as long as they are for business travel and do not exceed the authorised maximum payments. If you pay above the maximum, you cannot have a dispensation for the excess. The authorised maximum payments for 2018 / 2019 have not changed since the previous year. You will see that there are also authorised rates for travel by motorcycle or bike. More information about the authorised rates can be found on the HM Revenue and Customs (HMRC) website - www.hmrc.gov.uk There were no changes to the mileage rate allowance announced in the Chancellor’s Budget. Type of Vehicle Rate per mile for the Rate per mile for all first 10,000miles subsequent miles Car or Van 45p 25p Motorcycle 24p 24p Bicycle 20p 20p Members are reminded that the above mileage rates are the MAXIMUM that can be paid tax-free. Employers can agree mileage rates with their employees at a lower level if they so wish. If the Member Company decides to set a lower mileage rate to the figures shown above, then the employee would qualify for a tax refund on the difference. The refund would come from the HMRC via the individual employees own tax return, and would reflect the difference between what his employer paid and the maximum payment allowed tax-free. Subsistence (Lodging) Allowances (Tax Free) At this time of year, we send you the latest agreement with Her Majesty’s Revenue and Customs (HMRC) regarding the annual rates agreed for the Taxation of Travelling and Subsistence Allowances to take effect from the 6th April. In 2012, the CPA informed the Membership that HMRC would not be prepared to negotiate a new rate for the tax-year 2012/2013 or beyond; but were prepared to maintain the blanket dispensation at the current rates - £38.23 per night within the M25, and £31.85 per night outside the M25. HMRC had confirmed that with effect from the 6th April 2013, each Member company would have to effectively make its own arrangements with their workforce regarding the level of subsistence allowance to be paid and would also need to arrange a dispensation (to obtain an Approval Notice) with their local tax office. For further information, please contact your local HMRC office or visit the HMRC website on www.hmrc.gov.uk Legal: 3 40 CPA Bulletin > May 2018 www.cpa.uk.net Employment Rights (Increase of Limits) Order 2018 From the 6th April, the maximum weekly pay for calculating redundancy will increase from £489 to £508. The maximum award for unfair dismissal is also increasing from £80,541 to £83,682. The rate for Lay-off payments is increased to £28 per day for a maximum of 5 days in any 13 week period. Travelling and Subsistence Allowances - 2018/19