Car mileage reclaim

stephenh84

Hi,

I wonder if someone can help me. I do alot of driving for work (im employed) and I've been told I can reclaim some tax relief on my mileage.
I currently recieve £300 per month Car allowance (which i am taxed on) and recieve 20p per mile for every mile I do for my work.
Last tax year i did 13984 miles for my company and fill out an expenses form to recieve 20p a mile from my employer.

So my question is can I fill out a reclaim tax form to claim the remaining 20p per mile up to 10000 miles and 5p for anything over, so does my car allowance cancel this out (even though i pay tax on my car allowance).

Many thanks,

Stephen

jennifernil

Your car allowance is irrelevant here, it is just extra income.

You can claim tax relief on the 10000 miles @40p and the rest @ 25p. Only the tax relief, not the actual amount.

So 10000 @ (40-20)p = £2000

3984 @ (25-20)p = £199.20

If you are taxed @ 20% then 20% of £2199.20 = £439.84 tax to reclaim.