Car mileage tax!

iamana1ias

wallsy wrote: »

Take the 60p

I have a car allowance, plus a mileage rate of 12p

At the end of a tax year though I am able to claim back the the difference between 40p and 12p per mile for the first 10000 miles.

I have been doing this now for a few years and got a nice cheque a month later. It was like a saving scheme lol

No, you claim the TAX on the difference.

dori2o

wallsy wrote: »

Take the 60p

I have a car allowance, plus a mileage rate of 12p

At the end of a tax year though I am able to claim back the the difference between 40p and 12p per mile for the first 10000 miles.

I have been doing this now for a few years and got a nice cheque a month later. It was like a saving scheme lol

How ever this year the tax man has changed my tax code to 901. This has concerned me because if i do not do the millage I have done in proviso years I will end up owing more tax. Any advise?

I have also been asked to complete a self assessment even though I do not work for my self. I dont understand. ;o(

Point 1,please understand you do not get the actual mileage back,you get relief on the total mileage at your highest rate of tax.

Point 2, Unfortunately IF you do make mileage relief claims every year you cannot remove the expenses from your code. you can however ask that the expenses be reduced to a level that you feel will be sufficient to cover your expected mileage. (the reason for this is to stop unscrupulous agents from removing the expenses from clients codes and then making end of year claims for their clients, from which they would take a commission,plus the fact HMRC has a duty to collect the correct amount of tax as near as possible)

Point3,Self Assessment. It seems that your last claim was in excess of £2500, this is one of the criteria for completing a return, hence the reason why you have been asked to complete one. Contrary to popular belief you DO NOT have to be self employed in order to meet the requirements of Self Assessment.