Tax Return - Mileage
Discussion
Hi
I have to complete my Tax return tomorrow and I have been told that I can claim the difference between what the company pays for business miles and the 44p that I should get. I have a rough idea of how many business miles I have completed but what are the chances of the Inland Revenue checking up on this? I believe you can only claim up to 10,000 miles anyway and I have done at least that. What else could I claim for? Shoe polish and hair cuts may be going a little far
I have to complete my Tax return tomorrow and I have been told that I can claim the difference between what the company pays for business miles and the 44p that I should get. I have a rough idea of how many business miles I have completed but what are the chances of the Inland Revenue checking up on this? I believe you can only claim up to 10,000 miles anyway and I have done at least that. What else could I claim for? Shoe polish and hair cuts may be going a little far
If your Business Mileage is over 10,000, the allowable limit drops to 25p per mile for the extra business miles over the 10,000.
You can also claim an additional 5p for every business trip on which you carried a passenger. And it's 5p per passenger too.
Regarding other claims - employees can only claim expenses incurred "wholly, exclusively and NECESSARILLY" in the course of their employment. This rather limits what is claimable. However, generally items such as subscriptions to professional or trade bodies would be allowed and possibly an element of domestic costs - if your employer REQUIRES you to work from home.
You make the addition 25p claim directly to the Revenue on the tax return AND THEY will reduce your 2005/06 tax liability by 25p PER MILE @ your maximum rate of tax (22% or 40%).
You can also claim an additional 5p for every business trip on which you carried a passenger. And it's 5p per passenger too.
Regarding other claims - employees can only claim expenses incurred "wholly, exclusively and NECESSARILLY" in the course of their employment. This rather limits what is claimable. However, generally items such as subscriptions to professional or trade bodies would be allowed and possibly an element of domestic costs - if your employer REQUIRES you to work from home.
You make the addition 25p claim directly to the Revenue on the tax return AND THEY will reduce your 2005/06 tax liability by 25p PER MILE @ your maximum rate of tax (22% or 40%).
Edited by Eric Mc on Tuesday 23 January 12:05
sleepezy said:
One more thing that may help increase your claim. The IR allow you to claim from your home to client - most businesses allow the lesser of work to client and home to client.
You're entitled to claim any difference in the same way as p/mile relief.
You're entitled to claim any difference in the same way as p/mile relief.
That little snippit of knowledge just earnt me an extra £728 on my last 6 months mileage, I owe you
tuffer said:
sleepezy said:
One more thing that may help increase your claim. The IR allow you to claim from your home to client - most businesses allow the lesser of work to client and home to client.
You're entitled to claim any difference in the same way as p/mile relief.
You're entitled to claim any difference in the same way as p/mile relief.
That little snippit of knowledge just earnt me an extra £728 on my last 6 months mileage, I owe you
After consultation with my accountant I have found this not to be the case, it was apparently stopped a few years ago. You can only claim from your work address to the client address unless you are classified as a Location Independant Worker in which case you claim from the moment you put on your underpants.
tuffer said:
tuffer said:
sleepezy said:
One more thing that may help increase your claim. The IR allow you to claim from your home to client - most businesses allow the lesser of work to client and home to client.
You're entitled to claim any difference in the same way as p/mile relief.
You're entitled to claim any difference in the same way as p/mile relief.
That little snippit of knowledge just earnt me an extra £728 on my last 6 months mileage, I owe you
After consultation with my accountant I have found this not to be the case, it was apparently stopped a few years ago. You can only claim from your work address to the client address unless you are classified as a Location Independant Worker in which case you claim from the moment you put on your underpants.
Location Independant Worker - I don't think that's an official HMRC classification!
As far as I'm aware (I'm an enthusiastic amateur, not a proper expert) you can still claim the whole journey, and one thing that even many people who know this don't realise, is that you are allowed to stop off at work on your way.
See: www.hmrc.gov.uk/manuals/eimanual/EIM32231.htm
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