An investigation resulted in domiciliary care workers at a care provider receiving reimbursement for mileage expenses incurred during their work.
More than £107,000 has been secured for care workers after a Fair Work Agency (FWA) investigation, prompted by information received by the contact centre, identified underpayments relating to business mileage.
The investigation found that domiciliary care workers at a care provider were not receiving appropriate reimbursement for mileage incurred while carrying out their duties.
Fair Work Agency colleagues worked with the employer to review its mileage arrangements. As a result the company recognised staff had been underpaid and sought to rectify this with affected workers, including former employees.
The organisation also increased its mileage reimbursement rate from 5p per mile to 40p per mile for 2026.
The total amount identified for repayment is £107,935.96, including:
- £61,343.93 for workers at the Mansfield branch
- £46,592.03 for workers at the Northampton branch
Fair Work Agency:
This outcome will make a significant difference to the workers affected and demonstrates the importance of ensuring employees receive the pay and entitlements they are owed.
We will continue to work with employers and workers to improve compliance, raise awareness of employment rights and help create fairer workplaces.
The Fair Work Agency states that it continues to support workers and employers to improve compliance and ensure that workers receive the pay and employment rights they are entitled to.
Business mileage for employees using their own car
Since April 2026, employers can pay up to 55p per business mile tax and NI free to employees who use their own car fir the first 10,000 miles and 25p for any above,
The Chancellor announced in the budget that the over 10,000 miles rate will increase from April 2027 to 35p per mile.
Do employers have to pay these rates to their employees?
No, employers are not legally required to pay their employees 55p per mile! They can choose to pay a lower rate (or nothing at all for travel expenses), though doing so may affect employee retention or require the employee to claim Mileage Allowance Relief (MAR) for the unused balance from HMRC.
PAYadvice.UK 11/11/2026