Business milage - cost per mile
Discussion
Company decision I would guess, they COULD pay you 40p per mile and give you a car allowance if they really wanted to. However it makes sense doesn't it, 40p covers a share cost for both petrol and running a car, whereas if they have already paid for the buyingt/running bit with an allowance then it's only really petrol to pay.
You can still get tax relief on the diff upto 40p though I think.
You can still get tax relief on the diff upto 40p though I think.
If an individual has a company car but the company does not pay for the fuel, the individual can claim between 6p and 18p per mile (depending on engine type and size) for business trips without any tax implications.
If the individual uses his own personal car for business trips, he can claim 40p per mile up to 10,000 miles and 25p thereafter.
An individual who receives a car allowance is technically using his own car. Therefore, he could be paid up to 40p per mile without any tax implicatiosn. If his employer is only paying 14p per mile to these individuals, then that is obviously a company policy. The individuals who receive these lower rates could make a claim to the Revenue for the missing 26p per mile.Obviously, the tax reduction they receive is the mileage amount claimed miltiplied by their top rate of Income Tax.
Anyone can voluntarilly complete an SA form.
These days there is a "Short" tax form which is easier to complete. You can always ask the tax office to send one out to you. You can go back six years if you want to make retrospective claims.
You need to have supporting evidence for any claims you make.
If the individual uses his own personal car for business trips, he can claim 40p per mile up to 10,000 miles and 25p thereafter.
An individual who receives a car allowance is technically using his own car. Therefore, he could be paid up to 40p per mile without any tax implicatiosn. If his employer is only paying 14p per mile to these individuals, then that is obviously a company policy. The individuals who receive these lower rates could make a claim to the Revenue for the missing 26p per mile.Obviously, the tax reduction they receive is the mileage amount claimed miltiplied by their top rate of Income Tax.
Anyone can voluntarilly complete an SA form.
These days there is a "Short" tax form which is easier to complete. You can always ask the tax office to send one out to you. You can go back six years if you want to make retrospective claims.
You need to have supporting evidence for any claims you make.
Edited by Eric Mc on Thursday 24th January 11:09
Eric Mc said:
These days there is a "Short" tax form which is easier to complete. You can always ask the tax office to send one out to you. You can go back six years if you want to make retrospective claims.
You need to have supporting evidence for any claims you make.
Is it the P86?You need to have supporting evidence for any claims you make.
and also, supporting evidence - till receipts for fuel?
Yes - but more importantly, proof that the trip was business related and the mileage involved.
Therefore, a work diary or, even better, copies of the expense claim forms submitted to your employer are much more useful in these types of claims.
The Short Tax Return is called the SA200.
Therefore, a work diary or, even better, copies of the expense claim forms submitted to your employer are much more useful in these types of claims.
The Short Tax Return is called the SA200.
Edited by Eric Mc on Thursday 24th January 11:47
Eric Mc said:
Yes - but more importantly, proof that the trip was business related and the mileage involved.
Therefore, a work diary or, even better, copies of the expense claim forms submitted to your employer are much more useful in these types of claims.
The Short Tax Return is called the SA200.
Is a work diary sufficient proof of mileage? As I don't keep petrol receipts but mileage could be more or less verified through sat nav.Therefore, a work diary or, even better, copies of the expense claim forms submitted to your employer are much more useful in these types of claims.
The Short Tax Return is called the SA200.
Edited by Eric Mc on Thursday 24th January 11:47
Eric Mc said:
The Short Tax Return is called the SA200.
Eric - is this the correct form?http://www.hmrc.gov.uk/sa/shorttaxreturn.htm
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