Charging for mileage - your options
Some customers request 'Transport and Trips Out' which might be on a shopping, café or garden centre outing, or to a GP, hospital or dental appointment. This is an optional service which is not offered by all Helpers.
In addition to you paying for your time during trips out, your customer should reimburse you for the use of your car and your petrol. We recommend one of the following options:
Option 1: Customer pays the Helper 45p per mile in cash or by bank transfer
HMRC has set a reimbursable rate of 45p per mile for when an employee or self-employed worker uses their own car for work purposes, above which it’s considered a ‘taxable benefit’. The amount is designed to cover petrol costs as well as a contribution towards wear and tear and insurance.
We recommend that you give the customer a receipt for any money that changes hands, either in cash or via bank transfer.
Here are some examples of how it works in practice:
Miles per round trip | What you receive direct from the customer |
Up to 5 miles | 45p x 5 = £2.25 |
Up to 10 miles | 45p x 10 = £4.50 |
Up to 15 miles | 45p x 15 = £6.75 |
Up to 20 miles | 45p x 20 = £9.00 |
Etc |
|
Option 2: Helper adds an agreed amount of time to the visit
You can add an agreed amount of time per mile to the schedule and we collect the payment from the customer at the end of the month along with the payment for your visits. We deduct 20% + VAT handling charge and pay the balance to you on the 10th of the following month.
Here are the recommended thresholds and how much you would receive (depending on your hourly rate):
Miles per round trip | Time added to visit in schedule | What you receive (based on £17 per hour) |
Up to 5 miles | 15 minutes | £3.23 |
Up to 10 miles | 30 minutes | £6.46 |
Up to 15 miles | 45 minutes | £9.69 |
Up to 20 miles | 1 hour | £12.92 |
Etc |
|
These are just guidelines and, as a self-employed helper, you don't have to follow them. However, we find that communicating a framework to both helpers and customers makes it easier to agree on an arrangement that's fair for everyone and manages expectations. Whatever you decide, please ensure you and your customer(s) agree on arrangements before you set out on any journeys.
You should not charge the customer for mileage relating to travel to their house for visits as this is included in your hourly rate.