Car Allowance and Mileage

[edition]

Hi,

I take car allowance instead of taking a company car and get 11p per mile for company miles.

I have just done my tax self assessment and was wondering if I have missed claiming anything on it? Can I claim the difference between 11p and 45p?

Any advice would be much appreciated:-)

[edition]

Thanks for the replies.

So as an example:

11p paid vs 45p allowed =34p

If 1000 miles driven £0.34 x 1000 = £340

£340 x 0.4 (40% tax) = £136 refund

Is my above understanding correct?

Many thanks

[Scrump]

As chicken dinner said, you can claim the tax back on the difference between 11p and 45p (for the first 10k business miles pa).


ETA: your calculation above is correct.

Edited by Scrump on Saturday 27th November 22:07

[edition]

Great thanks.

Just to double check this is the case even though my work pay me a monthly allowance?

[Scrump]

edition said:

Great thanks.

Just to double check this is the case even though my work pay me a monthly allowance?

Assuming you pay tax on your allowance then it has no bearing on this.

[Sheepshanks]

anonymous said:

[redacted]

Well…..you do ‘claim’ the difference. What you get refunded depends on your tax rate.