Mileage expenses at work
Discussion
Above is from employers' viewpoint, but you'll get the gist.
This is advice for employees
https://www.gov.uk/tax-relief-for-employees/how-to...
This is advice for employees
https://www.gov.uk/tax-relief-for-employees/how-to...
Using your own vehicle
If you use your own vehicle for business, you may be able to claim ‘Mileage Allowance Relief’.
To work out how much tax relief you can claim, add up your business mileage for the tax year and multiply it by the approved mileage rates.
If your employer doesn’t pay you a mileage allowance you can claim the full approved amount of Mileage Allowance Relief.
If your employer pays you a mileage allowance but it is less than the approved amount, you can claim Mileage Allowance Relief on the difference.
If your employer pays you more than the approved amount you’ll have to pay tax on the difference.
If you use your own vehicle for business, you may be able to claim ‘Mileage Allowance Relief’.
To work out how much tax relief you can claim, add up your business mileage for the tax year and multiply it by the approved mileage rates.
If your employer doesn’t pay you a mileage allowance you can claim the full approved amount of Mileage Allowance Relief.
If your employer pays you a mileage allowance but it is less than the approved amount, you can claim Mileage Allowance Relief on the difference.
If your employer pays you more than the approved amount you’ll have to pay tax on the difference.
Yep, you can claim back the tax on the difference between the rate paid and the HMRC rate.
For example, if you do 1,000 work miles over the year in your own car, and your employer pays you 25p per mile, you can claim back the tax you’ve paid on 1,000 x 20p.
So if you pay tax at 40% you can get back £80 (40% of £200)
For example, if you do 1,000 work miles over the year in your own car, and your employer pays you 25p per mile, you can claim back the tax you’ve paid on 1,000 x 20p.
So if you pay tax at 40% you can get back £80 (40% of £200)
Yeah what everybody above said is correct just go to gov.uk and search for P87 send it in for the tax years needed, the furthest you can claim back too is the 13/14 tax year. Just remember it's only 'tax relief' on the amount claimed and not the actual expense, so 20% or 40% depending on your Wife's tax band. The likely hood is though the employer is already giving her the 45p per mile approved rate and nothing further is due.
PorkInsider said:
Yep, you can claim back the tax on the difference between the rate paid and the HMRC rate.
For example, if you do 1,000 work miles over the year in your own car, and your employer pays you 25p per mile, you can claim back the tax you’ve paid on 1,000 x 20p.
So if you pay tax at 40% you can get back £80 (40% of £200)
^^^THIS.For example, if you do 1,000 work miles over the year in your own car, and your employer pays you 25p per mile, you can claim back the tax you’ve paid on 1,000 x 20p.
So if you pay tax at 40% you can get back £80 (40% of £200)
You can only claim the tax on the difference between what they pay and HMRC rate, not the whole difference.
poo at Paul's said:
Of course it also means she will need to do a self assessment tax return, which is a pain up the arse if it is only a few quid. I know some people who don't bother due to this.
No it doesn't. It only means you have to do it if you exceed a certain threshold. The form you want is P87 if your 'allowable expenses' do not exceed £2,500.I guess that's down to a generational difference as well, not just being a bit pig-headed...
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