Milo Posted March 15, 2007 Report Share Posted March 15, 2007 If my wife (who doesn't get a car allowance) was asked to use her car for a business trip tomorrow and they only paid her 30p a mile, then she would be entitled to claim tax relief up to the 40p limit in exactly the same way I do. Hence regardless of whether or not you receive a car allowance we're all entitled to the same tax relief per business mile. I'm going to be late for the school run now.... Link to comment Share on other sites More sharing options...
sitas3 Posted March 15, 2007 Report Share Posted March 15, 2007 [ QUOTE ] [ QUOTE ] right both my tax office and 2 other separate tax offices have confirmed that you are entitled to the same tax relief per business mile carried out in a private car regardless of whether or not you receive a car allowance. Phew! [/ QUOTE ] The same tax relief or the same tax-free payment of 40p per mile? They're not the same thing. [/ QUOTE ] OK it was confusing the conversations I had with them. The ultimate example I gave was that I was earning 200k per year (I wish), get a 50k car allowance which is robbed in the usual way tax+NI-wise and my company allow me to claim 40p per mile for business miles. Am I going to incur extra tax because I also receive a car allowance which is designed to cover depreciation etc but not fuel. All 3 stated that I won't incur extra tax unless I go above 10k miles per year and in that instance, I'm taxed on the difference between 22p and 40p. So I had another example - same as above but I can only claim 22p per mile from the company and still receive a car allowance. All 3 said I could claim tax relief on the difference between that and 40p for the first 10k miles only. Clear or clear as mud? Link to comment Share on other sites More sharing options...
stooH Posted March 15, 2007 Report Share Posted March 15, 2007 Absolutely spot on. Exactly my understanding of it, me thinks milo's employers (who are accountants by the sound of it... ) are trying to him. Link to comment Share on other sites More sharing options...
Calm Chris Posted March 15, 2007 Report Share Posted March 15, 2007 [ QUOTE ] Ah bollox to you all, I've got work to do I hope the taxman catches up with you like he did me [/ QUOTE ] Link to comment Share on other sites More sharing options...
gizze Posted March 15, 2007 Report Share Posted March 15, 2007 Interesting thread, I have to agree with the guys here though Milo, if you get an allowance to buy a car you can then claim 40p a mile, it is yor company that is setting the limit not the Inland Revenue. I do around 15k business miles a year in my car and then Fiona does around 15k miles too, I have a an allowance of £600 a month and she has £400 a month, and we both claim 40p a mile, I leave it till year end to work out what I owe above and beyond the 10k mile limit. Link to comment Share on other sites More sharing options...
shark_90 Posted March 15, 2007 Report Share Posted March 15, 2007 [ QUOTE ] All 3 stated that I won't incur extra tax unless I go above 10k miles per year and in that instance, I'm taxed on the difference between 22p and 40p. [/ QUOTE ] I thought it was 25p as stated here But other than that, spot on. I think Milo is being shafted (as am I ) and you are indeed entitled to a payment up to 40p for the first 10,000 miles, and 25p thereafter. If you weren't entitled to that in the first place, then you wouldn't be able to claim tax relief on it either Link to comment Share on other sites More sharing options...
sitas3 Posted March 15, 2007 Report Share Posted March 15, 2007 sorry I meant 25p - got 22p on the mind as that was what a previous employer used to pay us per mile. Link to comment Share on other sites More sharing options...
jwo Posted March 15, 2007 Report Share Posted March 15, 2007 My understanding of it is, if you receive a car allowance you can recieve up to 40p per mile (upto 10k etc.) from your company, but most/all will only pay 10-15p per mile as you are getting the cash in leiu of the car. You can then claim tax relief on the difference that the company pay and 40p. Link to comment Share on other sites More sharing options...
_Tone_ Posted March 15, 2007 Report Share Posted March 15, 2007 [ QUOTE ] By the way, a lot of the reason for the seperation on your wage slip is more to do with the fact that most company's don't treat 'car allowance' payments as ellegible for pension contribution calculations [/ QUOTE ] Yep so right and when you get a pay increase of say 3% thats is based on your salary element. What is fecking far worse is when the ex biatch wants more cash the fecking courts take into consideration your car allowance regardless of wether you need a car for your job or not - feckers!! Link to comment Share on other sites More sharing options...
DuncS3 Posted March 16, 2007 Report Share Posted March 16, 2007 I have had a car allowance for 9 years (choice of allowance or company car) and my company also provides me with a fuel card for which I am taxed on what I use as benefit in kind. I do not claim a penny back from my company for any mileage, even if its 35k miles a year, I just claim the standard rate (40p for 10k, whatever it is above that) and I get this reimbursed from the tax man via my tax return. Dunc Link to comment Share on other sites More sharing options...
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