Petrol allowance for work

Mrs_bojangles

I have just started working for a small care agency and use my own car for work. The company pay 22p per mile which doesn't cover petrol costs or wear and tear on the vehicle. Also, the manager has explained that we have to deduct 20miles daily from this total because 'everyone has to travel to and from work'... :money:I'm currently working part-time and not liable for tax every week so I may not be eligible to claim these expenses from the tax man. Does anyone have any advice on boosting my petrol/vehicle allowance?

thanks, val

Anihilator

No.
You can apply to the HMRC for the 18p per mile (upto 10,000) and 7p (over 10,000) as an additionaly relief on taxation.

No way of boosting the actual allowance though.

ScottishSapper

Mrs_bojangles wrote: »

I have just started working for a small care agency and use my own car for work. The company pay 22p per mile which doesn't cover petrol costs or wear and tear on the vehicle. Also, the manager has explained that we have to deduct 20miles daily from this total because 'everyone has to travel to and from work'... :money:I'm currently working part-time and not liable for tax every week so I may not be eligible to claim these expenses from the tax man. Does anyone have any advice on boosting my petrol/vehicle allowance?

thanks, val

On top of that you WILL also have extra insurance costs:(
If you have not already declaired to your insurance company, technically (and legally) you will not be covered in the event of an accident

HappyMJ

You can also claim the first 20 miles from hmrc which will give you a £2000 tax deduction straight away. If you don't wish to use your own car then tell them that it is no longer available for business purposes as your insurance does not cover you and you need to use public transport and taxis to get around during working hours. See what they say then.

Anihilator

HappyMJ wrote: »

You can also claim the first 20 miles from hmrc which will give you a £2000 tax deduction straight away. If you don't wish to use your own car then tell them that it is no longer available for business purposes as your insurance does not cover you and you need to use public transport and taxis to get around during working hours. See what they say then.

The latter bit would probably see the person out of a job. Most home support work will state a car and its use are part of their terms and conditions.

jimbo_the_jetset

As above see the HMRC website for info & contact them for advice.

I thought the mileage allowance was applicable from your 'normal place of work'. Do you have to go to ab office first thing in the morning? If not, you may reasonably argue that your home is base and start counting from there. To randomly deduct 20 miles a day seems dodgy to me.

AdrianHi

Anihilator wrote: »

No.
You can apply to the HMRC for the 18p per mile (upto 10,000) and 7p (over 10,000) as an additionaly relief on taxation.

No way of boosting the actual allowance though.

Only if you paid enough tax in the first place to be able to claim it back.

Many insurance policies do not charge extra for business use but do tell your insurer.
A 45mpg diesel car costs about 11-12p per mile but 22p is not enough to cover that, maintenance and a contribution to depreciation.

Also you get tax releif on the difference between 22p per mile and the 40p per mile limit (first 10,000 miles in a year) - i.e. tax releif on 18p per mile, not 18p per mile.

mustrum_ridcully

ScottishSapper wrote: »

On top of that you WILL also have extra insurance costs:(
If you have not already declaired to your insurance company, technically (and legally) you will not be covered in the event of an accident

Unless the insurance policy already covers this (mine does at no extra cost).

nomoneytoday

Unless you car does under 20 mpg the 22p will cover the fuel bill...

Mark_Hewitt

A friend of mine used to use his car for work going around fixing computers at hospitals. At the start the milage allowance was a significant supplement to his income, but it ended up him being out of pocket. He's moved to a different job now.

flyingscotno1

I think the milage allowance at 40p/mile is generous enough. Even deducting the office home journey I find it covers the bills easily, but 22p/mile might be tighter.