Travel tax allowance question

ABN

My work involves a lot of driving a lot of miles between clients. I didn’t use to get a travel allowance so could claim 40p per mile in tax allowance.

The company now pays us 30p per mile. This monies comes as part of our wage each month and as such is taxed.

The accounts person, don’t think she is a qualified accountant, has told us that we can still claim 10p per mile, that being the difference, in way of tax relief.

As I’m shortly about to fill in my tax return would appreciate knowing whether this is correct or not as I feel it is incorrect information.

Thanks

fengirl_2

If the 30p pm is indeed taxed along with your salary, then you can continue to claim the 40p pm relief from tax because you have not yet received any tax relief.
I wonder why they are taxing the 30p pm? Maybe you could ask the accounts person because if you put in proper claims and are only paid for business miles, then they shouldn't be taxing it.

ABN

In light of your post I have just rechecked my salary slips in a little more detail.

The gross earning per month is made up of different elements one of which is mileage. What I didn’t notice was the little N against it for Tax and NIC. Thus it would seem that I was mistaken and the mileage is not taxed.

So does that mean I can claim the extra 10p?

trevormax

ABN wrote: »

In light of your post I have just rechecked my salary slips in a little more detail.

The gross earning per month is made up of different elements one of which is mileage. What I didn’t notice was the little N against it for Tax and NIC. Thus it would seem that I was mistaken and the mileage is not taxed.

So does that mean I can claim the extra 10p?

Yes you can for the first 10,000 miles. After that, if your employer is still paying you 30p per mile, then you will actually be getting 5p too much and this will be taken into account when you claim for the 10p.

Torby

your company will pay you 30p p/mile as thats whats obviously been agreed between employee and employer somewhere along the line....HMRC will allow you to claim tax relief on the difference...i.e. the 10p difference equates to about 2p in tax...thats how I heard it explained on another forum as well...I think you need a P11D (or something form) I'm sure Fengirl will know the correct number...although someone may come along and correct me....lol

fengirl_2

Yes, torby and trevorare correct. You can claim tax relief on the extra 10p pm for 1st 10,000 miles, after that, you owe HMRC 5 p pm! I assume your employer arranges to tax any mileage paid over 10000 miles, or pays the lower rate - if they don't, they should!

ABN

Milage is just under the 10,000 so no problem there atm. But usefull to know for the future.

Many thanks for all the help.