Configuring Mileage Claims

May Release - Postcode on Mileage Claims

It is now possible to require the to & from postcodes on mileage claims. To enable this your expense types must be set to use an HMRC category of Mileage Payments or Mileage Payments - Lower Rate. You must then set Require Postcode to Yes (for InPay linked systems see here).

Clients typically wish to allow contractors to claim a certain amount per mile.  Often there is a higher rate which can be claimed up to a certain number of miles and then a lower rate for miles above that rate.

In order to achieve this you would need two different expense types: one for the higher rate and one for the lower rate.

In the first expense type the HMRC category must be set to "Mileage Payments" as shown below.

In the second expense type the HMRC category should be set to "Mileage Payments - Lower Rate" as shown below

In a similar way, the Expense Template must have two entries.  One for the higher rate mileage and one for the lower rate as shown below.

It can be seen that that the higher rate mileage type has been selected for the first entry with a rate of 45p per mile.  The second entry pays a lower value of 12p per mile.

You should then contact the support team to request that the higher rate mileage feature is enabled along with the number of miles that you wish to be claimable each year.  If you wish to change this value in any subsequent year then you should contact support to have this value changed.

When the contractor enters expenses they will see a tally of the number of miles claimed this year in the bottom right of the screen.  You can see in the image below that the contractor has entered 9750 miles in the current year.  The limit is set to 10,000 miles per year and the remaining miles that can be claimed is 250.

In the image below the contractor has tried to claim 300 miles on the higher mileage rate.  A warning box has been displayed showing that only 250 miles can be claimed at the higher rate.  The number of miles entered in the field has been automatically reduced to 250.

Configuring Expenses for PAYE Workers

For when PAYE contractors claim expenses you would request that the contractor enters the net and VAT amounts for each expense.  Some expenses may have a VAT element whereas others may not attract VAT.  You would normally set up two templates to allow for these different types of expense.

In the example below you can see that the expense template contains two entries:

• VAT Expense.  It can be seen that the tax-rate is S-STD (which is configured as 20% in this example) and the entry method is gross
• Non-VAT Expense.  This type of expense is set to T0 (which is configured as 0% in this example) and the entry method is gross

When the contractors enters expenses the screen will look like the image below.

Here it can be seen that

• An expense for tools of £25 has been submitted.  The template was configured for Gross Value entry using a 20% tax rate.  RSM InTime has calculated the VAT automatically
• An expense for books of £10 has been submitted.  The templated was configured for Gross Value entry using a 0% tax rate.  Therefore the VAT has been automatically set to £0.