Petrol allowance help

NorhternMonkey

hello can anyone help?

I'm looking at a new job tha will require me to use my own car to travel to and from meetings. I have been told that i an claim the etrol back @ 28p per mile!!

This seems a little low to me as i will surly have to change the insurance on my car to state bussiness use wich will bump up the cost of that. can anyone shed any light on this for me?


thanks

NM

molerat

The employer can give you anything they want to but I would ask for 40p. If they (tightwads) will not do this then you can claim the tax back on the difference between 28p and 40p.

Conor_3

In addition to molerats spot on advice, you only need Class A business use which is free on many policies.

NorhternMonkey

Thanks guys,

so I have to negotiate a better deal on that. Any idea what the uk average is? Icant find it anywhere!

markelock

i get 10p a mile. just claim the rest back from the revenue to make up the 40p.

Road_Hog

markelock wrote: »

i get 10p a mile. just claim the rest back from the revenue to make up the 40p.

You can't claim the difference from the revenue, you claim tax relief on it. So if the OP is getting 28p, he can claim tax relief at,

40p-28p=12p

12p x however many miles he does in a year multiplied by 22/40%. For the first 10,000 miles.

NorhternMonkey

So I can claim back 12p per mile from Mr. taxman? :T

Road_Hog

NorhternMonkey wrote: »

So I can claim back 12p per mile from Mr. taxman? :T

No.

You can claim tax relief from the taxman. Let's say you do 100 miles per week except for two weeks of the year.

12p x 5,000pa = £600. The taxman then says you are basically being short changed by you employer by that amount and you can have tax relief on it (negative tax in other words).

£600 x 22% = £132
£600 x 40% = £240

NorhternMonkey

thats a bit disapointing! I hope that it will cover general wear and tear on the car!

iolanthe07

I have business use on my car and it only cost £8 a year extra.

AdrianHi

If you look at a copy of what car they give you pence per mile total cost of ownership for cars assuming they are bought new and used for 36 months and 36,000 miles.
40p per mile is the maximum HMRC will allow your employer to pay you free of tax & NI.
You don't get much of a family car for 40p per mile, small cars OK in that budget, even less of a car for 28p per mile.
I'd want the 40p per mile.