Mileage Rates for Volunteer Drivers
HMRC defines a volunteer driver as someone who drives for an organised volunteer driving scheme and does not get paid whilst driving.
What can volunteer drivers claim?
Volunteer drivers can claim the HMRC Approved Mileage Allowance Payments of up to 45 pence per mile for the first 10,000 miles travelled. They can also claim up to 25 pence per mile for every mile travelled after the first 10,000 miles.
If your actual mileage expenses are greater than the HMRC mileage rate, you may wish to keep a record of your actual motor expenses: fuel, insurance, road tax, servicing, repairs and depreciation. You can then calculate your actual mileage expenses.
Can I claim tax relief if I am paid less than 45 pence per mile?
No. Many organisations pay less than the HMRC approved mileage rate, but volunteer drivers cannot claim the difference against their tax. This is because they are not paid wages for volunteer driving, and so do not pay tax from which they can claim the shortfall.
Can I make a taxable profit whilst volunteer driving?
Yes. A volunteer driver can drive for many different organisations and some of them pay a flat rate for each mile driven. If that rate is more than 25 ppm it is possible to make a profit once you are claiming more than 10,000 miles.
For example, if you receive a flat rate of 30 ppm you will receive more than the Approved Mileage Allowance Payment after 20,000 miles.
HMRC require you to declare this excess and pay income tax on it. However, because volunteer driving is not gainful employment, the HMRC do not require you to pay national insurance on it.
What records do I need to keep?
To satisfy HMRC, you need to keep a mileage log of the trips you drive as a volunteer driver. For each trip, log:
- The date of travel;
- The reason for the journey;
- The miles covered;
- The type of transport used.
Use Tripcatcher mileage log to store your mileage quickly and easily: just click the sign up link at the top of the screen.
What if I volunteer for more than one organisation?
Many organisations use different mileage rates, which can become confusing. The mileage expenses for each organisation need to be calculated separately.
Using Tripcatcher mileage log, record the client that each journey is made for. Tripcatcher will produce mileage reports for you, one for each client, so you can print them off to support your expense claim.
At the end of the year you can run a mileage report to determine your tax free mileage claim entitlement for the year.
