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Company Car Tax Question
magyar
Posts: 18,909 Forumite
in Cutting tax
I have just been given a company car allowance (i.e. monthly cash). The actual amount monthly will be ~£360 after tax (to cover car purchase, insurance and maintenance). In addition, they pay 12p per business mile for petrol.
The HR policy states that it is my responsibility to reclaim the difference between the allowable HMRC limit. So does this mean that I can claim the difference between 40p and 12p in tax relief?
E.g if I do 6,000 business miles then I get tax relief on 6000 x 28p = £168?
The HR policy states that it is my responsibility to reclaim the difference between the allowable HMRC limit. So does this mean that I can claim the difference between 40p and 12p in tax relief?
E.g if I do 6,000 business miles then I get tax relief on 6000 x 28p = £168?
Says James, in my opinion, there's nothing in this world
Beats a '52 Vincent and a red headed girl
Beats a '52 Vincent and a red headed girl
0
Comments
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That would be correct – a simple claim can be made at the end of each year!
Can I take it that the Car Allowance is shown gross in your payslip and the £360 net is simply your calculation?0 -
That would be correct – a simple claim can be made at the end of each year!
Can I take it that the Car Allowance is shown gross in your payslip and the £360 net is simply your calculation?
Yes, that's correct, it's paid as a gross figure and subject to normal rates of tax/NI etc. £360 net is simply my calculation.
Thanks for your confirmation Ceeforcat.Says James, in my opinion, there's nothing in this world
Beats a '52 Vincent and a red headed girl0
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