Paying Mileage for Daily Deliveries

[podgexy]

Hi,

We need to drop off items to a local customer on a daily basis.
The easiest solution would seem to be to pay an employee mileage, maybe 20 quid a week. Assuming backup, civil service rates observed etc is in place would Revenue have an issue?

 

[mathepac]

I don't know but your employee's insurance company might.

Assuming its a passenger vehicle and s/he has normal domestic, leisure and social purposes insurance, s/he is not insured to use the vehicle for business purposes.

This is normally an extension to regular insurance, but it excludes the use of the vehicle for the carriage of goods or samples.

So to do what you suggest and to ensure that everyone has adequate insurance cover, your employee will require additions to his/her motor insurance policy and the cost may be prohibitive.

A cheaper alternative might be a courier van/taxi.