Mileage Allowance Balances and Rates
The mileage allowance amount must be calculated accurately whether you pay an allowance to your employees who claim this benefit by payroll or directly to the employee outside of payroll.
Mileage Allowance Balances
The mileage allowance amount must be added to a predefined balance to hold this amount. If you have set up an element for this allowance payment, it should feed this balance.
If you have set up P11D reporting for this benefit, you must update this balance prior to running the process for P11D reporting.
These are the predefine balances:
- Mileage Allowance Amount Taxed
- Mileage Allowance Amount not Taxed
You need to set up the balance feeds appropriately from elements used for payment, or update the balances at the year-end for P11D reporting, whichever is relevant.
Mileage Allowance Benefit Component
You need to create the Basic Mileage Details component in the Taxable Benefits calculation card. After you've created this, you can add the component details Mileage Allowance Payments. When creating the child component, you need to select the appropriate parent component with the unique reference. The unique reference links the parent and child components.
Here's how you can set up the components:
- Multiple child component each relating to individual claims with different effective start dates
- Or, a single child component with values updated each time a mileage claim is entered, to cumulative year to date amounts
In either case, ensure that the effective dates are within the relevant tax year.
At the end of the year, both the parent and child components are end dated to the Tax Year End date. You must then create new parent and child components Mileage Allowance with the relevant dates for the new tax year, as required.
| Field | Description |
|---|---|
| Reporting or Processing | Complete this field only if the option at the organization level is set to payroll processing, but the benefit will now be reported on P11D. If you've set it to P11D Reporting, you can't change it back to payroll processing for the remaining periods of the tax year. If you need to set it to P11D reporting, you need end date the processing component and the related child components. Create a component with the effective date from when the P11D reporting is required. Ensure that the values on this new component don't include the amounts taxed through payroll. |
| Kind of Vehicle | Select the appropriate value. |
| Optional remuneration arrangement | Select this check box, if you have OpRA and the employee has foregone an amount for this benefit. |
| Cash Equivalent or Relevant Amount |
Enter a value between 0 to 99999999. This is the cash equivalent or relevant amount of the mileage allowance benefit provided. |
Add the child component for Mileage Allowance Payments. Select the parent component against which the mileage claims are to be made:
| Field | Description |
|---|---|
| Business Miles Travelled Reimbursed |
Enter a value between 0 to 99999999. This is the amount you have already paid as reimbursement. |
| Business Miles Travelled not Reimbursed |
Enter a value between 0 to 99999999. Enter this value if the miles travelled haven't been reimbursed yet. |
| Mileage Payment Made |
Enter a value between 0 to 9999999.99. Enter any mileage amount that has been already paid. |
Mileage Rates
The predefined mileage rates used to calculate the payments are maintained according to the legislative requirements prescribed each year.
The miles claimed you enter on the Mileage Payment Claims feed the appropriate balances to determine what rates are applied, that is, one rate for mileage up to 10,000 and another for anything above 10,000.