Claiming back business miles.. Layman speak
Discussion
Hypothetical scenario. Let's say I pay 20% tax.
In my last job, I was paid £0.45 per mile for business expenses.
100 miles would see £45 in my pay packet. I understand it's not subject to tax.
My new employer doesn't reimburse for business mileage. I can therefore claim this back from the Government via tax return.
Would 100 miles still see £45 in the form of a cheque? I'm looking into it and keep interpreting it as 'tax relief', which would mean I claim back the tax paid on £45, meaning I only get £9 (£45 * 20%)
Am I missing something here?!
In my last job, I was paid £0.45 per mile for business expenses.
100 miles would see £45 in my pay packet. I understand it's not subject to tax.
My new employer doesn't reimburse for business mileage. I can therefore claim this back from the Government via tax return.
Would 100 miles still see £45 in the form of a cheque? I'm looking into it and keep interpreting it as 'tax relief', which would mean I claim back the tax paid on £45, meaning I only get £9 (£45 * 20%)
Am I missing something here?!
There are no expenses etc factored into the salary, no car allowance etc. There is a pool car, but this is often used by other employees which requires us to use our own vehicles at times. They don't reimburse any travel expenses (that's not a problem, I just need to understand what I can reclaim)
pmanson said:
Teddye4687 said:
There are no expenses etc factored into my salary. We have a pool car, but this is often used by other employees which requires us to use our own vehicles at times.
They don't reimburse any travel expenses
Will they cover train tickets? I'd be refusing to travel unless I had use of the pool carThey don't reimburse any travel expenses
I don't want this to turn into whether or not they're a good employer etc, just what I can claim back from the tax man
From what I understand, and though this is now moving away from my original question, company car users can only claim back for the fuel, which is a much lower rate @ £0.20 (for a 2 litre+ engine, link below shows other engine sizes)
So if your employer is paying you £0.20 for business mileage, you can't claim anything more. If they were paying you £0.25 per mile, you'd have to pay tax on the difference as it's classed as an income. If your employer paid you £0.15, you can claim relief on the difference.
https://www.gov.uk/government/publications/advisor...
I'm still nonethewiser on my original question though, so advice most welcome...
So if your employer is paying you £0.20 for business mileage, you can't claim anything more. If they were paying you £0.25 per mile, you'd have to pay tax on the difference as it's classed as an income. If your employer paid you £0.15, you can claim relief on the difference.
https://www.gov.uk/government/publications/advisor...
I'm still nonethewiser on my original question though, so advice most welcome...
Edited by Teddye4687 on Wednesday 1st April 15:49
I just always assumed the £0.45 was the employer effectively claiming the tax back and passing this on without the employee having to go through HMRC. I didn't know they were actually taking the hit themselves.
£0.09 per mile doesn't even cover the petrol. Are there means to claim back all the other expenses of using a private vehicle for business use, i.e. running costs? Bear in mind, there's no car allowance etc
£0.09 per mile doesn't even cover the petrol. Are there means to claim back all the other expenses of using a private vehicle for business use, i.e. running costs? Bear in mind, there's no car allowance etc
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