P11D (Guide)  Section E

Mileage allowance payments

Enter the figure over and above the approved amount for each payment which is exempt from tax.

The approved amount is the number of business miles travelled (other than as a passenger) multiplied by the appropriate rates for the kind of vehicle used. These are shown in the table below.

Approved mileage allowance payments can only be made for travel in the employee’s own vehicle.

Kind of vehicleFirst 10,000 business miles in 2018 to 2019Each business mile over 10,000 in 2018 to 2019
Cars and vans45p25p
Motorcycles24p24p
Cycles20p20p

Read chapter 16 of the 480 expenses and benefits guide for further information.





Background

The P11D Organiser is designed to replicate the payment process that organisations perform for reimbursing business travel. As a result, the system requires the user to set up “Mileage Schemes” to reflect the respective pence per mile rate that an organisation reimburses to its employee to determine any Benefit In Kind each employee had during that tax year and report this on the P11D.


There are occasions when the number of mileage schemes being operated within an organisation runs to more than the 10 schemes accommodated by the system, which is particularly prevalent in public sector bodies.

As a result, we have designed a simplified method which is now the recommended approach for ALL ORGANISATIONS with reportable mileage payments.


Approach

This method removes the need to replicate the mileage schemes and calculations already made elsewhere, but simply state what has already been paid to that individual and the number of miles (cumulatively across all schemes) and implement a simplistic mileage scheme in the Organiser to receive this information.

 

There are special provisions made to deal with passenger payments and you should exclude this additional value from your standard mileage data extractMore information on Passenger Payments can be found towards at end of this document.

 

Data Extract from payment system

The following extracts are required from Payroll or any other payments system holding the information following the end of the tax year:

 

· Person ID (e.g. Payroll Number and/or NI Number)

· Business Miles covered and Mileage payment made for those miles (excluding passenger payments) - this can be year to date totals or at a payment/transaction level (should you choose).

· Round Sum Allowance (“Lump Sum”) payments made (if any)

· Passenger payments made and Total Passenger Miles (if any)

 

 

Setup a Vehicle in P11D Organiser

To accommodate the importing of the extracted mileage information, a vehicle record needs to be created as all mileage records are associated with the vehicle used to perform the journey(s). It is suggested for simplicity to enter this record with a Vehicle Registration Number of simply “Mileage”. If you have the additional need to accommodate Round Sum Allowance/Lump Sum payments, then create a second vehicle record and enter this record with a Vehicle Registration Number of “LumpSum”


To create these, you can either import the cars by creating an import file like this.


Please refer to the importing section of the main Section E Guide or manually add them via Section E as a Private Car:


Once you have selected any person from within the company go to Section E (from the Sections list highlighted)


Make sure you are in Section E (check form title) then click Add



Select a "Mileage allowance rate" from the Description list and fill in the boxes then click SAVE

Add a mileage payment (e.g. £1 or £0) to Allowance Rate 0 and click SAVE to save. 


Once you have saved this, the car will be saved and the mileage payment will be complete for that individual. Simply delete the mileage payment that will already be highlighted – this will remove the taxable entry but it will leave the car in the system to be used later.


Repeat for a car with a registration number of "LumpSum" if required.




Importing Business Mileage

Once the Vehicle and Mileage Schemes have been set up, these can be used in extending  the data extracted from the originating payment system to prepare the mileage file ready 

for import.


Sample Extract from payment system

NINO

 

PAYROLL

 

FROM

 

TO

 

PAYMENT

 

ANNUAL BUSINESS MILES

 

NA054007A

 

PR0014

 

06/04/2013

 

05/04/2014

 

6938

 

13876

 

NA000002A

 

PR0015

 

06/04/2013

 

31/01/2014

 

1413

 

2826

 

NA000029A

 

PR0027

 

06/04/2013

 

05/04/2014

 

5501.5

 

11003

 

 

Extended with Vehicle Registration and Mileage Rate Scheme number ready for importing

NINO

 

PAYROLL

 

FROM

 

TO

 

PAYMENT

 

ANNUAL BUSINESS MILES

 

MILESRATE
R_NUMBER
NA054007A

 

PR0014

 

06/04/2013

 

05/04/2014

 

6938

 

13876

 

0
Mileage
NA000002A

 

PR0015

 

06/04/2013

 

31/01/2014

 

1413

 

2826

 

0
Mileage
NA000029A

 

PR0027

 

06/04/2013

 

05/04/2014

 

5501.5

 

11003

 

0
Mileage


 

Importing Round Sum Allowance/Lump Sum Payments

The process for this is the same as mileage except the number of miles is set as Zero and the Vehicle used is with a Registration Number of “LumpSum”, set up previously.

 

NINO

 

PAYROLL

 

R_NUMBER
FROM

 

TO

 

PAYMENT

 

ANNUAL BUSINESS
MILES

 

MILESRATE
NA054007A

 

PR0014

 

Lumpsum
06/04/2013

 

05/04/2014

 

7500

 

0

 

0
NA000002A

 

PR0015

 

Lumpsum
06/04/2013

 

05/04/2014

 

7500

 

0

 

0



Passenger Payments – Consideration and Data Preparation

If you pay above HMRC rates for this particular element and if these supplements are rolled in to the mileage payments, the AMAP calculations will be incorrect, so by excluding these values and putting the passenger payments into section M (when required) to report any profit on those specific payments, we can ensure that the right Benefit In Kind is reported.


Currently, HRMC allows a supplementary element of up to 5 pence tax free for each additional passenger carried during a business journey. If the additional payment made by an employer is less than this value, you can simply ignore this element altogether. In the event that the payment is in excess of this allowance then there is a requirement to prepare a return for this.


An import file for loading into Section M may consist of the following elements:

 

Data Fields table
Information

P11D Field

code

Type

Field

Length

Inclusion

Pre-Format

Value of benefit

CASHEQV

Numeric

10

Compulsory

 

Benefit Date

DATE

Date

8

Optional

dd/mm/yyyy

Description of Benefit

DESCRIPTIO

Character

50

Compulsory

 

Amount Made Good

MADEGOOD

Numeric

10

Optional

 

NI Number

NI_NUMBER

Character

10

Key field

 

Additional Description

NOTES

Character

30

Optional

 

Payroll Number

PAYROLL

Character

20

Key field

 


 

In the illustration below, the first four columns can be used as an import file - the additional columns are to illustrate the rates and miles used to determine the import values.


PAYROLL

 

DESCRIPTIO

 

CASHEQV

 

MADEGOOD

 

 

Passenger

Miles

 

Passenger Mlg Rate

HMRC Allowance

No of

Passengers

PR0014

 

Passenger Payments

 

£7.00

 

£5.00

 

 

50

 

£0.07

£0.05

2

PR0015

 

Passenger Payments

 

£8.75

 

£6.25

 

 

125

 

£0.07

£0.05

1

PR0027

 

Passenger Payments

 

£21.00

 

£15.00

 

 

100

 

£0.07

£0.05

3