Car Allowance, calculating tax relief and online self assessment.

Simon_B_2

I've just filled out a P87 to calculate my tax allowance on my old personal car being used for work.

Miles claimed 8922 x 40p = £3568.8 (first 10,000 miles government rate)
Paid by company £988.15
One less the other £2580.65 @ 20% = £516 approx due?

So i enter into employment expenses for Business travel and subsistence expenses: £988.15, on my online self assessment and it tells me i am due just over £240? is this correct or have i missed something?

I also switched from my own car to a company one in Aug 2008 so the above is only to claim for April-August 2008. Am i due more than whats being calculated in the self assessment or have i miss calculated, or put the figure in the wrong box on the online assessment form?

Thanks Simon

fengirl_2

Your calculation is correct. There is some other liability which is reducing the overpayment which you think has arisen. Was yur cmpany car benefit in your code number for the year? Is there an underpayment from a previous year which was not included in your code number?

tuggy12

Is the 10,000 miles allowance at 40p a full year's allowance?

Perhaps for the part year you are claiming this will be cut down on a pro rata basis, with the balance of miles at 25p.

Just a thought.

suso

tuggy12 wrote: »

Is the 10,000 miles allowance at 40p a full year's allowance?

Perhaps for the part year you are claiming this will be cut down on a pro rata basis, with the balance of miles at 25p.

Just a thought.

Miles isn't done on a pro rata basis, its based on actual miles done.
40p/mile for 10,000 miles and 25p above that.

@ Simon

There is something we don't know about, most likely the car benefit is being taxed on the full year and hasn't been proportioned to show its available use from August - April. Or are you been taxed for the full year of fuel benefit

Where have you got the figures from the car benefit from ?

Simon_B_2

tuggy12 wrote: »

Is the 10,000 miles allowance at 40p a full year's allowance?

Perhaps for the part year you are claiming this will be cut down on a pro rata basis, with the balance of miles at 25p.

Just a thought.

This was my initial thought i have used the car allowance for 6 months and company car for 6, so it could be pro-rata.

Simon_B_2

suso wrote: »

Miles isn't done on a pro rata basis, its based on actual miles done.
40p/mile for 10,000 miles and 25p above that.

@ Simon

There is something we don't know about, most likely the car benefit is being taxed on the full year and hasn't been proportioned to show its available use from August - April. Or are you been taxed for the full year of fuel benefit

Where have you got the figures from the car benefit from ?

Hi

The above calcuations are the accumulation of the miles and money claimed and paid against my personal car between Apr08 and August 08 in August 08 this was replaced by a new company car i am making no claims for the company vehical in my figures.

suso

The figures you have supplied work out fine.

I guess you get approx 11p per mile from your company and you are claiming tax on 29p (the difference)

As your filing out SA have you entered in how much you are claiming in box 17 on the employment pages.

If I remember rightly you enter the amount you are reimbursed in box 12 and the difference in box 17.

You can't use a P87 if you are doing SA.

Simon_B_2

suso wrote: »

The figures you have supplied work out fine.

I guess you get approx 11p per mile from your company and you are claiming tax on 29p (the difference)

As your filing out SA have you entered in how much you are claiming in box 17 on the employment pages.

If I remember rightly you enter the amount you are reimbursed in box 12 and the difference in box 17.

You can't use a P87 if you are doing SA.

Thanks

The boxes on the online assessment are not numbered but they do have discriptions?

"As your filing out SA have you entered in how much you are claiming in box 17 on the employment pages.

If I remember rightly you enter the amount you are reimbursed in box 12 and the difference in box 17."

Can you tell me which boxes you are refering to?

Simon_B_2

up date i think i might have got it!! This is on the online self assessment btw.

Into box marked

Expenses payments received and balancing charges: £988 (Amount from company)

into

Business travel and subsistence expenses: £3569 (40p x 8922miles)

Gives me just over £550 claim back, seems logical to me.

suso

My mistake it wasn't box 12 (thats if you get paid more than 40p per mile) but box 16

Box 16 is in the Benefits Section the desription is
Box 16 Expenses payments received and balancing charges

Box 17 is in the section entitled Employment Expenses the description is Business travel and subsistence expenses

I presume you have the notes for the form but you can see them here.
http://www.hmrc.gov.uk/forms/sa102.pdf

I'm presuming you are filling in the employment pages of the SA return form SA102

Simon_B_2

Thanks, i was filling in box 16 for the £998 but i've just done as you mentioned and filled in box 12 instead and got the same result!
Brilliant thank you very much for your help :T