using own car for work mileage rates etc

using own car for work mileage rates etc

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Discussion

Trustmeimadoctor

Original Poster:

12,525 posts

154 months

Saturday 1st October 2016
quotequote all
ive used my own car for work ever since i could so 17 years or so and ive only ever claimed what the company pays currently 25p flat how do i go about getting the rest and can i back date it at all obviously not 17 years but a year or 2 would get me a fair amount extra back !

GT03ROB

13,208 posts

220 months

Saturday 1st October 2016
quotequote all
There is no "rest". You get what your company pays.

You may be able to claim tax relief on the difference between what your company pays & HMRCs rate in your tax return.


Eric Mc

121,779 posts

264 months

Saturday 1st October 2016
quotequote all
HMRC allows you to reclaim from your employer tax free up to 45p per mile up 10,000 miles and 25p per mile over 10,000.

If you have been claiming less than that from your employer, HMRC will allow you to reclaim the difference from them.


For example, say you did 9,000 business miles in a tax year. Your employer allowed you to claim from them 30p per mile. Therefore your employer will have repaid you £2,700 (9,000 @ 30p)

HMRC will allow you to claim the missing 3,000 @ 15p from them, i.e. £450.

However, they do not repay to you the actual extra mileage claim amount. They only offset the claim amount (£450 in this case) against your taxable income, thereby reducing your tax bill. This would give you a tax refund for the relevant year.

If you are only a basic rate taxpayer, then your tax refund would be £450 @ 20% = £90

If you are a higher rate taxpayer, then your tax refund would be £450 @ 40% = £180

And if you are a top rate taxpayer, then your tax refund would be £450 @ 45% = £202.50

HMRC allows you to go back three tax years. We are currently in tax year 2016/17. If you made a claim now, you could claim for tax years 2013/14, 2014/15 and 2015/16.

After 5 April 2017, 2013/14 would drop out.

Trustmeimadoctor

Original Poster:

12,525 posts

154 months

Saturday 1st October 2016
quotequote all
many thanks i shall look into it then smile

AMDBSTony

1,074 posts

166 months

Sunday 2nd October 2016
quotequote all
You can also claim an extra 5p/mile passenger payment if you have someone else in the car.

eliot

11,364 posts

253 months

Sunday 2nd October 2016
quotequote all
25p a mile is pretty low for a private car unfunded car. That rate is typical of someone who gets a car allowance payment.

marcusgrant

1,445 posts

91 months

Sunday 2nd October 2016
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25p a mile, I'd tell them to get stuffed! Costing you to drive for work

Trustmeimadoctor

Original Poster:

12,525 posts

154 months

Sunday 2nd October 2016
quotequote all
Oh i know its ste iirc company car rate is about 15p!


Mattt

16,661 posts

217 months

Wednesday 5th October 2016
quotequote all
It's easily done too, don't go paying people to do it for you.

I've seen a few agents popping up on Social Media who takes large cuts of the return.

Gareth1974

3,408 posts

138 months

Wednesday 5th October 2016
quotequote all
eliot said:
25p a mile is pretty low for a private car unfunded car. That rate is typical of someone who gets a car allowance payment.
How does it work when you do get an allowance or similar? My wife had a supposedly subsidised (s a very marginal discount) lease car, and the BIK was reduced in recognition of her sizable contribution towards the monthly cost. But she got a very modest mileage (12p) payment, would she be able to claim any differential between this and 45p?

Mattt

16,661 posts

217 months

Wednesday 5th October 2016
quotequote all
Not if it's a company car, fuel reimbursement only.

bogie

16,342 posts

271 months

Wednesday 5th October 2016
quotequote all
Gareth1974 said:
eliot said:
25p a mile is pretty low for a private car unfunded car. That rate is typical of someone who gets a car allowance payment.
How does it work when you do get an allowance or similar? My wife had a supposedly subsidised (s a very marginal discount) lease car, and the BIK was reduced in recognition of her sizable contribution towards the monthly cost. But she got a very modest mileage (12p) payment, would she be able to claim any differential between this and 45p?
I get an allowance and fuel paid. Claim the business mileage. Fuel paid is taxed as a benefit, mileage is claimed at HMRC rates of .45p for first 10K miles then .25p after. So essentially paying tax on personal fuel.

With an allowance and a lower rate than HMRC, you claim tax on the difference up to the max HMRC rates. You need to keep records of business miles done and claim in your tax return at year end.

Mattt

16,661 posts

217 months

Wednesday 5th October 2016
quotequote all
Car allowance is basically like salary and can be ignored for sake of fuel rates etc - you have a private car.

Raddors

492 posts

147 months

Thursday 6th October 2016
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HMRC doesn't reimburse the actual difference between what your employer sets as mileage and the standard approved rate. They only allow you to claim mileage allowance relief (MAF) which is just tax relief on the difference. If HMRC just topped up the difference between what every employer in the land decides to pay their staff and their approved rate, why would employers pay anything more than about 10p per mile??

Gareth1974

3,408 posts

138 months

Thursday 6th October 2016
quotequote all
Mattt said:
Car allowance is basically like salary and can be ignored for sake of fuel rates etc - you have a private car.
In my wife's case, it's not a car allowance, but a subsidised lease (she's pays around 80% of the market rate). It's taxed like a company car (BIK), but at a rate which take account of her sizeable contribution. As she has this car, the company then only pay her 12p per mile on business. Is she able to claim MAF on this?

Eric Mc

121,779 posts

264 months

Thursday 6th October 2016
quotequote all
Who is the car registered to?
Who's name is in the legal document i.e. the lease?