Company mileage
Discussion
There are 'approved mileage allowace payment' (AMAP) rates on the Inland Revenue website (www.inlandrevenue.gov.uk/rates/travel.htm)
The following document reiterates the AMAP rates, but goes into a bit more information about claiming back tax relief if you are getting paid less than the AMAP rate.
www.inlandrevenue.gov.uk/pdfs/ir124.htm
Hope this helps.
Neil.
The following document reiterates the AMAP rates, but goes into a bit more information about claiming back tax relief if you are getting paid less than the AMAP rate.
www.inlandrevenue.gov.uk/pdfs/ir124.htm
Hope this helps.
Neil.
As has been said, there are approved rates from the government. 40p per mile for the first 10,000 now, then 25p thereafter. (I'd get onto your employer BigM - it sounds like they are using the old approved figures)
This is now irrespective of what car you are driving, so you could get a 1.1 Fiesta and make a fortune, or a T350 and have some fun.
The days of company cars or milage as a perk are, I'm afraid, well and truely behind us
.
Rich (now forced out of Co Car into my own - Not too bad though, I settled for an S2000 as daily driver 
This is now irrespective of what car you are driving, so you could get a 1.1 Fiesta and make a fortune, or a T350 and have some fun.
The days of company cars or milage as a perk are, I'm afraid, well and truely behind us
. Rich (now forced out of Co Car into my own
- Not too bad though, I settled for an S2000 as daily driver
daydreamer said: As has been said, there are approved rates from the government. 40p per mile for the first 10,000 now, then 25p thereafter. (I'd get onto your employer BigM - it sounds like they are using the old approved figures)
This is now irrespective of what car you are driving, so you could get a 1.1 Fiesta and make a fortune, or a T350 and have some fun.
The days of company cars or milage as a perk are, I'm afraid, well and truely behind us
Rich (now forced out of Co Car into my own
Interesting.. My employer only allows 40 p a mile upto 6,000 miles, then drops, (I thought to 23, but could be 25p).
Must have a word with them. I've 4,000 miles of at least half paid for Tivving that could be done..
The rate is up to the employer. However, if they pay less than the 40p for 10k then 25p then you can claim tax relief on the "missing" amounts.
See www.inlandrevenue.gov.uk/pdfs/ir124.htm for what you need to do (if you do a tax return - just put the difference in there, else use a P87.
J
See www.inlandrevenue.gov.uk/pdfs/ir124.htm for what you need to do (if you do a tax return - just put the difference in there, else use a P87.
J
This is sort of what I do (even though, I am the employer too
joust said: The rate is up to the employer. However, if they pay less than the 40p for 10k then 25p then you can claim tax relief on the "missing" amounts.
See www.inlandrevenue.gov.uk/pdfs/ir124.htm for what you need to do (if you do a tax return - just put the difference in there, else use a P87.
J
). I claim a set amount each year as part of my salary to cover everything, including business petrol - then claim the tax back on company milage done. I was a bit shocked when I worked out the numbers for the S2000 that will be arriving soon, so opted out. I wanted a system that would give similar benefits to the employees as the co car system does, so we essentially offer their average car cost over the last two years and say that's it, unless they end up doing far more milage for a particular project etc. Everybody knows where they stand, and we don't have to drive diesels.
This is also what I have done at work - the company pay 45p/mile up to 10k and then 30p after 10k - from memory the 40 and 25p rates are only the lowest that your employer can pay - and you can drive what you like - so having the Chimaera as a company car makes sense and is also huge fun!!
Regards
Neal
W9 TVR
Regards
Neal
W9 TVR
As Joust says, companies can pay what they like (although there is at least a moral obligation to offer alternative transport if employees don't want to use their own car). The 40p, 25p are the tax free amounts, therefore if you get paid more, you have to pay tax on the difference, if less, then you can claim back tax, again on the difference.
lovemytvr said: This is also what I have done at work - the company pay 45p/mile up to 10k and then 30p after 10k - from memory the 40 and 25p rates are only the lowest that your employer can pay - and you can drive what you like - so having the Chimaera as a company car makes sense and is also huge fun!!
Regards
Neal
W9 TVR
However, company car tax has increasd so much over the last couple of years, that it is encouraging people out of mondeo land and offering the enthusiast the chance to drive something fun (like a Chim
) for less than a company car would have cost them. An excellent choice might I add sir
Guess what's paying for the Noble - yep - opted out CC payments
daydreamer said: However, company car tax has increasd so much over the last couple of years, that it is encouraging people out of mondeo land and offering the enthusiast the chance to drive something fun (like a Chim
An excellent choice might I add sir
Technically your company is paying 5ppm over the tax free limit - so you are liable for the number of miles * 5p * tax rate on your annual tax bill. If you don't fill in a tax form, then you have a legal obligation to get your company to recover it via PAYE (basically your tax code will go down by the appropiate amount).
lovemytvr said: This is also what I have done at work - the company pay 45p/mile up to 10k and then 30p after 10k - from memory the 40 and 25p rates are only the lowest that your employer can pay - and you can drive what you like - so having the Chimaera as a company car makes sense and is also huge fun!!
Regards
Neal
W9 TVR
Remember that the tax man can come a looking for this money even after the event - you should therefore (nudge nudge) ensure that either you pay it direct or your company is taking via PAYE.
As daydreamer said - the 40/25 is not a minimum - its the tax free amount - many a company pay less than that for small engine cars, but you do get the advantage of claiming then back the "under tax free" rate tax back on your tax form.
See the link I posted if you aren't clear, and check with your tax person within the company if it still isn't clear!
J
Edited one I realised I'd posted the same as day dreamer in pp. 3&4 - DOH!
>> Edited by joust on Saturday 18th January 21:46
True Joust, my company only pays 15p per mile and thats for the largest engine size (petrol). But, I got a nice Xmas present from the Inland Revenue for my tax relief.
If you're going to opt out and take the money, the world is your oyster. Look at some of the cars people are driving post-opting out. Unfortunately, a lot of companies these days are jumping on the leased car bandwagon, so you get a Mondeo, or money for a Mondeo instead.
As someone said before, a company car is no longer a perk....
If you're going to opt out and take the money, the world is your oyster. Look at some of the cars people are driving post-opting out. Unfortunately, a lot of companies these days are jumping on the leased car bandwagon, so you get a Mondeo, or money for a Mondeo instead.
As someone said before, a company car is no longer a perk....
Just read the IRS page 'cos I'm sure it used to be 60p a mile. How the hell do they justify 20p a mile for a bicycle?
You can also tell they naff all about motorbikes at 24p a mile. Most modern bikes cost as much to run as cars - more expensive insurance, £200+ on tyres every 4-5000 miles, under 40mpg average. They certainly aren't trying to get people to use them instead of a car.
You can also tell they naff all about motorbikes at 24p a mile. Most modern bikes cost as much to run as cars - more expensive insurance, £200+ on tyres every 4-5000 miles, under 40mpg average. They certainly aren't trying to get people to use them instead of a car.
OK - it depends how the "car allowance" is paid to you. Speak to your company's tax person and they will tell you if you have any tax credits, and how to get hold of them.
markda said: I am entitled to either a company car or cash allowance. Because I have opted to take the cash allowance I get only 25p per mile.
But when I started here I wasnt entitled either a car or cash allowance. But instead was able to claim 45p per mile.
However, the principle of a car allowance is that it pays for the purchase & maintenance of the car, hence the mileage charge should reflect that you only need to recover petrol. 25ppm sounds very very generous (~12ppm is the norm).
The rules if you have a car allowance are more complicated, your company tax advisor, or the local tax office, will work it out for you.
J
J
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