Mileage Allowance

saddler_andy

I may be stabbing in the dark but;

If I recieve 40p/m from the company I work for, Can I fill in the relevant forms and get tax back?

would it be if i got 35p/m off my company I could claim the further 5p?

Please tell me if i'm being stupid.

ceh209

*THIS IS ASSUMING YOU DRIVE UNDER 10,000 MILES A YEAR*

If you receive 40p per mile, you shouldn't have to fill anything in, as you should be receiving it gross i.e. no tax deducted from your company.

If you receive 35p per mile, you can claim tax relief on the difference of 5p. This means you get tax back at your marginal tax rate e.g. if you are a 20% tax rate payer, you will receive 1p per mile back.

HTH x

Moneybot

Just a quick question if I am getting 30p per mile is this lower than I should be expecting to be paid?

saddler_andy

Moneybot wrote: »

Just a quick question if I am getting 30p per mile is this lower than I should be expecting to be paid?

As i expected you can claim that extra 10p which can add upto £1000 onto your wage packet a year,

saddler_andy

http://www.hmrc.gov.uk/forms/p87.pdf

BoGoF

saddler_andy wrote: »

As i expected you can claim that extra 10p which can add upto £1000 onto your wage packet a year,

No it can't, you can claim tax relief on the £1000 which would either be £200 or £400 or somewhere in between depending on your tax rate.

And if you get paid 30p for miles over 10,000 then that it above the approved rates and would need to be taken into account.