For temps not working under an umbrella company, is the mileage rate for temporary assignment received from their agency taxable or not?
Answer: The answer depends on the nature of the contract that the temporary worker has with the agency. Employees of Contractor Umbrella Ltd have an overarching contract of employment that provides for a series of different assignments. In those circumstances each workplace is regarded by HMRC as a “temporary workplace” and the mileage rate is allowable as a tax benefit.
Unless the contract of employment between an agency and the worker replicates those circumstances then the workplace would be regarded by HMRC as “permanent” and any mileage rate paid would be taxable.