Using own car for work and loosing out

aries69

closed wrote: »

They are trying it on, but if you've worked there less than 12 months, you might want to wait a couple of months before rocking the boat.

I agree - I don't have any form of contract regarding grievances, notice period, conditions, termination etc. We do not have a Health and Safety policy that I know of.

I feel there is no going back and I've got to address the situation, I really value my job but the old saying "I work to live and not I live to work" keeps popping up

sunshinetours

aries69 wrote: »

I agree - I don't have any form of contract regarding grievances, notice period, conditions, termination etc. We do not have a Health and Safety policy that I know of.

I feel there is no going back and I've got to address the situation, I really value my job but the old saying "I work to live and not I live to work" keeps popping up

More fool your employer then as no contract means you will be covered under employment laws which are hugely in favour of the employee

As far as mileage rates as some have correctly mentioned above you can be paid 40p / 25 p per mile depending on mileage (below and over 10k pa). Any amount under this you can then reclaim tax relief on at the end of each tax year

If you (or anyone) are paid a car allowance this is basically additional salary. Any car that you use this towards would still be your own car as so the approved mileage payments can still apply as above although your employer is likely to pay you less per mile if they are paying a car allowance (you can still claim back the tax on the difference however)

Be careful what other benefits you get however as your employer "paying some" towards your own mobile contract is likely to be a taxable benfit. Better if they provide you with a company mobile

Lum

How is the employer paying for your petrol? Is it cash in hand, expenses or as part of your salary? If part of your salary is it being taxed or not?

I was in a similar boat to you once. I did get a small car allowance as part of my wages and other than that I just got petrol as expenses, however come end of year my employer were putting the petrol through as a taxable benefit and the car allowance as wages.

I made a big spreadsheet of my wages + allowance + fuel payments and how much tax I'd paid on them, then compared that to my business mileage for each year (between 40,000 and 60,000 miles) and how much tax free fuel payment I was allowed. Worked it all out and for the 5 year period I'd overpaid tax to the tune of 6.5 grand.

Sent it off to the revenue. Had to chase and pester them but I eventually got it all back as a nice lump sum.

aries69

Hi again - have spent all evening working on spreadsheets and checking petrol receipts etc.

I have a copy of every petrol receipt since I started from 1st April
I pay for petrol via debit card, hand receipt in and they put money into my account within day or two. I do not doubt that I have been reimbursed pound for pound and occasionally they have added an extra £10 as goodwill (but only occasionally).


If they decide to pay me per miles eg 30p per mile I understand I can claim the other 10p via HMRC - or 20p/20p - at what point do I claim? Is it annually/backdated.

Thanks again

sunshinetours

aries69 wrote: »

Hi again - have spent all evening working on spreadsheets and checking petrol receipts etc.

I have a copy of every petrol receipt since I started from 1st April
I pay for petrol via debit card, hand receipt in and they put money into my account within day or two. I do not doubt that I have been reimbursed pound for pound and occasionally they have added an extra £10 as goodwill (but only occasionally).


If they decide to pay me per miles eg 30p per mile I understand I can claim the other 10p via HMRC - or 20p/20p - at what point do I claim? Is it annually/backdated.

Thanks again

Anything they pay you over the actual cost of business petrol would be a benefit in kind and taxable so don't go that route

Please re read the replies above - you cannot reclaim the additional mileage allowance from HMRC but you can reclaim the TAX RELIEF on the underpaid element.
So if you are paid 30p per mile you can after the end of the tax year (5th April) put in a claim for tax relief on the 10p per mile

rob7475

Hi,

Sorry to hijack this thread but I have a similar question.

My employer pays me £375 per month car allowance which I am taxed on. Any business mileage gets paied at 15ppm. The way fuel prices are going, this barely covers fuel, never mind wear and tear.

I know I can fill in a P87 form to get tax relief but i'm not 100% sure what i'll actually get back. Will I get the tax on the difference between 15p and 40p (ie. 5 ppm) or will I get the full 25ppm back?

Thanks,

Rob

spiro

rob7475 wrote: »

Hi,

Sorry to hijack this thread but I have a similar question.

My employer pays me £375 per month car allowance which I am taxed on. Any business mileage gets paied at 15ppm. The way fuel prices are going, this barely covers fuel, never mind wear and tear.

I know I can fill in a P87 form to get tax relief but i'm not 100% sure what i'll actually get back. Will I get the tax on the difference between 15p and 40p (ie. 5 ppm) or will I get the full 25ppm back?

Thanks,

Rob

40ppm is the HMRC agreed level if you get no car allowance, 15ppm is the HMRC agreed level if you get car allowance. Therefore there is nothing you can claim back from HMRC. If you could all get you is the tax oin the difference. You need to bear in mind that these allowances are designed to cover the full cost of a car only the costs over owning it for private use and business use i.e. increased service frequency.

victor2

spiro wrote: »

40ppm is the HMRC agreed level if you get no car allowance, 15ppm is the HMRC agreed level if you get car allowance.

Replace car allowance with company car.
A car allowance is taxable income, just like basic salary. You are still using your own vehicle for company business, so are entitled to the 40ppm.

getmore4less

spiro wrote: »

40ppm is the HMRC agreed level if you get no car allowance, 15ppm is the HMRC agreed level if you get car allowance. Therefore there is nothing you can claim back from HMRC. If you could all get you is the tax oin the difference. You need to bear in mind that these allowances are designed to cover the full cost of a car only the costs over owning it for private use and business use i.e. increased service frequency.

Please point this out on HMRC site I could not find it.

rob7475

getmore4less wrote: »

Please point this out on HMRC site I could not find it.

I've had a search on the HMRC site and I can't find a clear answer either. There only seems to be answers for those that either have a company car or those who use their own car. No mention for people who use their own car but get a car allowance.

I may ring my local tax office to try and get a clear answer out of them.