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Employee claiming back mileage - any tips
gingergirl21
Posts: 89 Forumite
in Motoring
Hi there
My husband has a car which he leases and gets an allowance for from his company. A while back they took away fuel cards which is crap as he does about 20,000 business miles a year.
The company allow him to claim back 17p per mile.
He has already dealt with the tax relief side of things but it still doesn't seem to go anywhere near covering his business mileage.
He claims back 17p a mile and the company then deduct VAT from this amount. So if he's claimed back for 100 miles he gets £17 minus vat so £14.02. Obviously this will become an even bigger deduction in the new year.
It just seems odd to me that he pays the VAT, and yet the company deduct it. I could understand the company claiming back the VAT from the tax man but it seems unfair they deduct it from my husband. Effectively he is geting paid 14p per mile.
Can someone explain this to me and give me any tips on how to start managing the situation better?
My husband has a car which he leases and gets an allowance for from his company. A while back they took away fuel cards which is crap as he does about 20,000 business miles a year.
The company allow him to claim back 17p per mile.
He has already dealt with the tax relief side of things but it still doesn't seem to go anywhere near covering his business mileage.
He claims back 17p a mile and the company then deduct VAT from this amount. So if he's claimed back for 100 miles he gets £17 minus vat so £14.02. Obviously this will become an even bigger deduction in the new year.
It just seems odd to me that he pays the VAT, and yet the company deduct it. I could understand the company claiming back the VAT from the tax man but it seems unfair they deduct it from my husband. Effectively he is geting paid 14p per mile.
Can someone explain this to me and give me any tips on how to start managing the situation better?
0
Comments
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You are better off posting this on the tax moneysaving board there bookkeepers, accountants and former HMRC staff can help you.I'm not cynical I'm realistic
(If a link I give opens pop ups I won't know I don't use windows)0 -
I don't think they should be taking the VAT of him0
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