My employer has changes our mileage allowance without consultation

by M.walker Tue Aug 22, 2023 8:53 am

have been with my employer now for three years, when i was first employed as a senior engineer my contract stated we would be paid £0.45 per mile, as part of my role i travel to numerous sites daily as we build networks so can spend all day traveling to sites. We would then submit mileage claims and be paid out within the week, this was necessary as we would spend a high amount on fuel. It is also worth note that i had a car allowance which was for general wear and tear on my vehicle. Since then i have been promoted to an area lead which means my travel has increased significantly, i also still received a car allowance and the £0.45 per mile allowance (also i never received a contract for me to sign which never outlined the specifics of the role, and my new manager wants me to be at certain places and undertake certain things even though my job description [looks very generic and similar to other roles, surely this should not be the case) anyway the company have recently announced that they reducing the mileage allowance to £0.25 per mile instead and we will have to claim the remainder from HMRC, from what i am aware they can not do this and we have not had any consultation and it a direct change to my contract, and because the company has paid this amount for the time that i have been there, then is a precedent and i have a right for it to be expected. This will mean that i will have to pay out a high amount of fuel and wait quite some time for it to be reimbursed. Please can someone assist.

by flyingfish Wed Aug 23, 2023 9:22 am

M.walker wrote:the company have recently announced that they reducing the mileage allowance to £0.25 per mile instead and we will have to claim the remainder from HMRC

If that's what the company said, they are misleading you. HMRC won't pay any mileage to you. All thst they will do is refund the tax on the difference.

Example say you do 1,000 miles.
At HMRC rates thats a business expense of £450. Company pays you 25p/mile making £250. You can claim tax relief on the difference, which at BR tax is £40.

By the way HMRC rate is drops to 25p after 10,000 miles.

I would double check exactly what they've said both about the mileage and the car allowance. It would be unusual for a company to pay both an allowance and the full mileage, as that 45p is supposed to cover overall running cost not just incremental per mile costs, hence the reduction after 10,000 miles.

by **assassin** Fri Aug 25, 2023 4:05 am

Clear breach of Contract Law, they cannot change the conditions of a contract unless YOU AGREE to it, refuse and they underpay you then it becomes theft and a clear breach of contract and theft so dont agree and as you have no new contract the terms of your old contract apply, simples.

Do they want to pay you or get into a court battle? many solicitors do this through insurance and would happily take such a case on and even if you lose you only pay the insurance premium.

If your old contract has not been revoked or superceded by a new contract then you are still bound by those conditions and so are they.

If they ask you to sign a new contract then dont refuse, but sign it V.C. and your signature as VC means vi coactus and indicated thay duress was applied to get you to sign the contract and if duress is applied to make you sign the new contract is invalid and can not come into force. Do this more times with the DWP and there is nothing they can do except accept their ignorance and stupidity.

by flyingfish Fri Aug 25, 2023 6:06 am

Was there a pay rise associated with the promotion?

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My employer has changes our mileage allowance without consultation

My employer has changes our mileage allowance without consultation

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Re: My employer has changes our mileage allowance without consultation

Re: My employer has changes our mileage allowance without consultation

Re: My employer has changes our mileage allowance without consultation