General and background information – Mileage Allowance for Private cars


HMRC publish a set of tables for approved mileage allowances for business mileage incurred in a privately owned vehicle.


Type of Vehicle

First 10,000 Business Miles in 2017-18
Each Business Mile over 10,000 in 2017-18

Cars and Vans
45p
25p
Motorcycles
24p
24p

Cycles

20p
20p

(For information on Mileage Allowance Payments for Company Cars there is a separate document for this here).


Payments up to these limits are deemed to be tax free and do not need to be reported on the P11D Form. Only the excess has to be reported.

HMRC accepts that mileage allowances paid to employees, using their own privately own vehicles for business purposes, within the set limits attract no tax liability. This is because the rates are set to cover the full costs of running a privately owned vehicle e.g. petrol, servicing, insurance, road tax, depreciation etc.


If an employee is paid at or below the set rates then there is no tax for them to pay on the receipt of the mileage allowance. However if the employee is paid less than their set limit per mile, they can claim tax relief on the difference between what they have been paid by their employer and what they could have received from the set rates. In these circumstances you can use the P11D Organiser to prepare a Business Mileage Claim form on behalf of your employee.


However if the employee receives more than the set rate for their own car, HMRC deem a profit to have been made by the employee, and will seek to tax that profit & it is this profit that has to be returned on the P11D. 


P11D FORM: Section E




P9D FORM: Section A(1) (Obsolete after 2015/16 Tax year)


P11D (Guide)  Section E



Additional HMRC Documentation and external help

Click the links below to go directly to the HMRC website to download or view the PDF or help files listed below.


HMRC P11D Guide

https://www.gov.uk/government/publications/paye-end-of-year-expenses-and-benefits-p11d-guide


HMRC Booklet 480 (Chapter 6.7) 

https://www.gov.uk/government/publications/480-expenses-and-benefits-a-tax-guide


HMRC P11D Working Sheet 6

https://www.gov.uk/government/publications/paye-mileage-allowance-and-passenger-payments-p11d-ws6




Managing Mileage Payments (where NOT processed in external systems)

Should employees be paid at a different rate to the approved HMRC mileage AMAP rates for using privateltly owned cars for business mileage, the P11D Organiser can be used to create mileage records and then compare the values derived to the HMRC approved rates https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax 


A benefit in kind value arises where the amount of money received is in excess of the approved rates and the "profit" element should be declared to HMRC. Where mileage payments are made at less than the approved rates, this would leave the employee at a loss and therefore able to claim the underpaid value as tax relief from HMRC under Section 231 ITEPA 2003.


The process below shows both the manual and data importing method of creating such records and applying a mileage rates table within the software to emulate the mileage scheme in operation. If you do not wish to use the P11D Organiser to essentially emulate the mileage scheme(s) in operation within your organisation, simply use the more straightforward method detailed in the section below "Managing Mileage Payments (where processed in external systems)"



Manual data entry

Benefit and expenses records are assigned to a selected employee record within the system. 

The software will require a certain amount of information in order to calculate a benefit in kind value. The information required to be entered is particular to each section of the P11D.  


STEP 1. Select the employee record to that you wish to assign the benefit to 
STEP 2. Select benefit section “Section E” from the drop-down benefit selector – or click on the “Section E” icon at the top of the screen.
STEP 3. Click the ADD button.


STEP 4. Select a Mileage allowance rate Description from the available list & click OK



STEP 5. Enter the details of the benefit in order to allow the system to correctly calculate the benefit in kind value. This should include the number of business miles claimed and/or the total amount of money the employee has received in reimbursement.


Having entered the necessary details of the benefit, click on SAVE to save the record.

The saved record will be displayed as below




Setting the company mileage rates table up
In order for the system to calculate the difference the employee has received as compared to the HMRC approved MAPs (Mileage Allowance Payments) rates, you will need to set a table of the rates your company pays. To do this:-


Select TOOLS, then SETUP BUSINESS MILEAGE RATES from the toolbar    


Select the Mileage rate to use from the drop-down “Type of car” (e.g. Mileage allowance rate 1) and click ADD




Enter the values in the engine capacity fields (e.g. 0 to 9999) and the rates paid both upto and over the 10,000 miles break (e.g. 50p up to 10000 and 30p over 10000) & OK to save




Click on OK to save the rate table you have created (a confirmation pop-up will show to confirm the recalculation)




The record entered previously will now have been recalculated based on the table of rates that you have successfully saved:



Clicking on the “AMAP Rates” tab will show that there is a Taxable benefit of £550 for the example we have entered when compared with the 45p & 25p HMRC approved MAP rates.



Show Calculations
Having clicked to EDIT the benefit, clicking the Show calculations button will allow you to view the systems method of calculation used in deriving a BIK value.  






Importing data


File Type

The system can import data in numerous file types but a CSV (comma separated values) file recommended, it removes the complexities of Excel formulas and formatting.


Header row

The header row is used by the system to automatically select the correct import target field to match for import. It is therefore recommended to use the exact naming convention so as to remove the need to have to manually select the appropriate system target field.  Click the link to download the software Import header row TEMPLATES  



Square block of data

Try to remove all data above header row, below the last record and after the last column of data. This just helps the software interpret the data correctly.


Consistent data

The final column of data should contain consistent data i.e. a value in every cell. This ensures that the software moves to the ‘next row’ at the correct time. As you can select the data that is imported, it is sometimes wise to simply paste a column of ‘xxx’ on the far right to provide an import end.


Formatting

The format of some of the data to be imported is very important – the following pages clearly show what data and formats the software is expecting to import.


Key field

ALL data imported must contain a Key field - NI Number or Payroll Number for employees and Registration Number for cars – this is necessary to ensure that data can be married up correctly. Key fields are clearly highlighted in the table.


NOTE ON REGISTRATION NUMBERS: If you do not have any information regarding the vehicle used for the payment of mileage in a privately owned vehicle, you can create a dummy registration e.g. “CarReg”, “CAR1” or something similar. Please do not use a key field like payroll number or NI number for this exercise. 


Column Order

The column order in the spreadsheet is not important, as the P11D Organiser will automatically map as many fields as it can, and will remember the settings made during the import process as a configuration file for future use.


Compulsory Fields

Certain other fields must also be included in order for the import routine to correctly allocate/calculate benefits particular to individual import routines. These Compulsory fields are also clearly highlighted in the tables.


Optional Data

The remainder of data that can be imported is categorised as Optional and is displayed in standard type.


Vehicles - Privately Owned vehicles

Information

P11D Field code

Type

Field Length

Inclusion

Pre-Format

Cubic Capacity

CC

Numeric

10

Compulsory

 

Car Description

DESCRIPTIO

Character

50

Compulsory

 

Optional Extras

EXTRAS

Numeric

10

Not Required

 

Type of Fuel

FUEL

Character

1

Compulsory

A = All Other

D = Diesel 

E = Electric

L = Euro4

H = Hybrid

P = Petrol

B = BiFuel

C = Retro

NI Number

NI_NUMBER

Character

10

Optional

Check only

Payroll Number

PAYROLL

Character

20

Optional

Check only

List Price

PRICE

Numeric

10

Not Required

 

Date car first registered

REGISTERED

Date

8

Not Required

dd/mm/yyyy

Registration Number

R_NUMBER

Character

10

Key field

 


Mileage allowance - Privately Owned Car business mileage payments

Information

P11D Field code

Type

Field Length

Inclusion

Pre-Format

Expenses received

EXPENSES

Numeric

10

Optional


Mileage from Date

FROM

Date

8

Compulsory

dd/mm/yyyy

Business Mileage

MILEAGE

Numeric

10

Compulsory

 

Mileage Rate

MILESRATE

Numeric

1

Optional

 

NI Number

NI_NUMBER

Character

10

Key field

 

Additional notes

NOTES

Character

30

Optional

 

Payroll Number

PAYROLL

Character

20

Key field

 

Private Mileage

PRIVATE

Numeric

10

Optional

 

Registration Number

R_NUMBER

Character

10

Key field

 

Mileage to Date

TO

Date

8

Compulsory

dd/mm/yyyy




Step-by-step guide (importing data)

In order for the P11D Organiser system to import and calculate the benefit in kind value for mileage allowance payments in employees own cars, the system will need to hold the following information:-


Employee record
To assign the benefit to, using either NI Number or Payroll Number.
Car details
Using Car Registration Number - The details of the type of car the employee used for the journey (e.g. a Diesel Car with a engine size of 1999cc)
Mileage AllowanceMatching the employee record to the car record together with the dates of availability, amounts paid per mile, amount of mileage, any related payments (EXPENSES) the employee has received in addition to the mileage claim or any amounts that the employee has already paid themselves/made good (PRIVATEUSE)

An optional method of importing mileage vales on a regular basis, for example uploading monthly mileage values that will be cumulatively added & totalled.



IMPORT ROUTINE
IMPORT TYPE
FIELDS USED
EXAMPLE
E Employee details ADD/UPDATE
Employee record
NI_NUMBER or PAYROLL
BB123456B
001234
Vehicles - Privately Owned vehicles
Details of the car
R_NUMBER
DESCRIPTIO
CC
FUEL
A13CAR
Employees own car
1999
D
E - Privately Owned Car – Business Mileage

Allocation of the car to the employee. Together with the totals for the Business MILEAGE, MILEAGE RATE,  EXPENSES
and PRIVATEUSE.




Importing of Mileage values when entered cumulatively.



R_NUMBER
NI_NUMBER
FROM
TO
MILEAGE
MILESRATE
EXPENSES
PRIVATEUSE


R_NUMBER
NI_NUMBER
FROM
TO
MILEAGE
MILESRATE
PRIVATE


A13CAR
BB123456B
06/04/2014
05/04/2015
12000
1
500
0


A13CAR
BB123456B
06/04/2014
06/05/2015
1000
1
2000




Vehicles - Privately Owned Vehicles

STEP 1
IMPORT
Select FILE > IMPORT WIZARD (or use the system IMPORT icon to go to the Import wizard
STEP 2

ROUTINE

Select the Import routine to run: Vehicles: Privately owned vehicles - click NEXT

STEP 3
STEP 3 - SELECT SOURCE FOLDER TO USE
Navigate to and select the location of the folder that contains the import .CSV file to be used in the import process




The system will also display all other spreadsheet import files that are saved in the the same directory.


STEP 4 

MAP SOURCE DATA TO TARGET FIELD

Using the import template provided, the system will automatically configure and select the matching target field for the source data on the source CSV file (header row displayed on the left will match the correct target field displayed on the right).

TIP: Use the "Reconfigure P11D Organiser target field name" button to assist with this "mapping" process.

Click NEXT

NOTE: If you are not using the template then you will need to manually select the correct target fields using the “TARGET FIELD SELECTON” button. (These will initially be un-selected and displayed as ** EXCLUDED ** in the TARGET FIELD column) - CLICK HERE TO DOWNLOAD THE TEMPLATES


STEP 5
TARGET FIELD & DATA VALIDATION
The system will display the data in a table. A key ID selection of R_NUMBER will be set as the unique reference for asset/car
GREEN records are EXISTING cars in the system asset database (recognized by their R_NUMBER)
WHITE records are NEW cars to be added to the system asset database (not recognized by their R_NUMBER)

Clicking the NEXT button, the system will begin to validate the data and any records failing validation rules will be referred to in a series of pop-up messages. Any resulting invalid records will be removed and saved to an error log file at the end of the import process.




STEP 6COMMIT DATA CHANGE 

The system will now commit the data & create the benefit records. The system will confirm the numbers of records to be added & updated and the total number of records from the source file.  


NOTE - Backup DATAFolder is recommended as it gives you a restore point prior to committing the changes being made during the import.

CLICK FINISH

If your file contained no errors that need to be re-imported, simply click CANCEL to exit from the import wizard and return to the main P11D Organiser system.


Click CANCEL to to exit from the import wizard and return to the main P11D Organiser system.

STEP 7
VALIDATION & REJECTED RECORDS
Any records removed during the validation process will be saved to a “Import Error file”

These error files can then be viewed in EXCEL, and then, having made any necessary corrections and changes to the data file, re-imported to complete the import for ALL RECORDS.
Alternatively, use the SaveAS button to save the .dbf file as a CSV or XLS spreadsheet to your PC and work on it independently before re-importing.



If your file contained no errors that need to be re-imported, simply click CANCEL to exit from the import wizard and return to the main P11D Organiser system.




Mileage Allowance


STEP 1
IMPORT
Select FILE > IMPORT WIZARD (or use the system IMPORT icon to go to the Import wizard)

STEP 2

ROUTINE
Select the Import routine to run: E: Mileage Allowance - Privately owned car business mileage payments,  click NEXT


STEP 3

SELECT SOURCE DATA FILE TO USE
Navigate to and select the import .CSV file to be used in the import process

The system will also display all other spreadsheet import files that are saved in the the same directory.

STEP 4
MAP SOURCE DATA TO TARGET FIELD
Using the import template provided, the system will automatically configure and select the matching target field for the source data on the source CSV file (header row displayed on the left will match the correct target field displayed on the right)


TIP: Use the "Reconfigure P11D Organiser target field name" button to assist with this "mapping" process.

Click NEXT

NOTE: If you are not using the template then you will need to manually select the correct target fields using the “TARGET FIELD SELECTON” button. (These will initially be un-selected and displayed as ** EXCLUDED ** in the TARGET FIELD column) - CLICK HERE TO DOWNLOAD THE TEMPLATES


 

STEP 5
TARGET FIELD & DATA VALIDATION
STEP 5 – TARGET FIELD & DATA VALIDATION
The system will display the data in a table. A key ID selection of PAYROLL or R_NUMBER can be selected as the unique reference for the routine
GREEN records are EXISTING mileage records in the system database (recognized by their R_NUMBER and PAYROLL)
WHITE records are NEW mileage records to be added to the system database (recognized by their R_NUMBER and PAYROLL)
YELLOW records are NEW vehicle records where there is no existing car details record in the system so the benefit allocation cannot be made (not recognized by R_NUMBER)
PURPLE records are NEW employees, there is no existing employee record in the system so the benefit allocation cannot be made (not recognized by NI_NUMBER or PAYROLL number)



Clicking the NEXT button, the system will begin to validate the data and any records failing validation rules will be referred to in a series of pop-up messages. Any resulting invalid records will be removed and saved to an error log file at the end of the import process.

Validation has removed 2 unrecognized payroll number records



Validation has removed 1 unrecognized reg number records


STEP 6
COMMIT DATA CHANGE

The system will now commit the data & create the benefit records. The system will confirm the numbers of records to be added & updated and the total number of records from the source file.  

NOTE - Backup DATAFolder is recommended as it gives you a restore point prior to committing the changes being made during the import.

CLICK FINISH




STEP 10 – EXIT IMPORT ROUTINE OR DEAL WITH ERRORS 

EXIT IMPORT
If your file contained no errors that need to be re-imported, simply click CANCEL to exit from the import wizard and return to the main P11D Organiser system.


STEP 7
ERRORS HANDLING 
Any records removed during the validation process will be saved as an “Error file”
These error files can then be viewed and saved in MS EXCEL. Having made the necessary corrections and changes to the invalid records contained in the "error file" it can be used as a new source file to import the corrected records and complete the import for ALL RECORDS (initial load plus the subsequent "fixed" error records)


If your file contained no errors that need to be re-imported, simply click CANCEL to exit from the import wizard and return to the main P11D Organiser system.