Can you claim tax back from the revenue if you use your car for work?

nigreeves

My employers only pay me 20 pence a mile when I use my car for work and this just covers the petrol.
Am I able to claim an additional amount from the revenue to help cover wear and tear etc?

lazer

yes - you can.

The inland revenue allow 45p a mile for business use (note - not normal commuting) for the first 10,000 mile per annum

The additional 25p per mile will be subtracted from your taxable income and the the year based on the revised taxable income.

For most people, this would result in 5p per mile tax refund (assuming 20% tax bracket)

vax2002

20p a mile is the 1981 rate, what would happen if you did not use your own car ?
Providing and maintaining a vehicle out of your own pocket is a sure fire way to subsidise someone's poor business plan and 20p a mile does not even scratch the surface on running costs.
Also check you insurance covers you for use in connection with your Employers business, for if you are stopped you will be deep trouble, you need an extension similar to taxi insurance as you are travelling at your employers instruction.
To and from Usual place of work or commuting to work do not cover you, nor does in connection with your business, it must state in connection with employers business, usually if you are paying less than £1500 a year its safe to say you dont have such cover and are driving uninsured. If you are caught in carrying goods that belong to your employer with out carriage insurance you will be in even more trouble and under no circumstances must you carry any waste for them or you could be jailed.
I would have thought around £.45 a mile is a more realistic allowance.
If they could not come up with that, I would drive to work, park up as your insurance allows and see what they want to do from there, a car or van hire might be a good idea.

hcb42

OP hasnt said what they do, but if they are not a taxi or using vehicle for commercial selling, then they are probably covered by class 1 business use, which does not usually come at a premium.

I've had it for years.

Hammyman

nigreeves wrote: »

My employers only pay me 20 pence a mile when I use my car for work and this just covers the petrol.
Am I able to claim an additional amount from the revenue to help cover wear and tear etc?

Question already answered.


OP: Do you have business use on your insurance or does your employer provide insurance on your car when using it for business purposes? If neither apply then when using your car for work you are driving uninsured.

vax2002

hcb42 wrote: »

OP hasnt said what they do, but if they are not a taxi or using vehicle for commercial selling, then they are probably covered by class 1 business use, which does not usually come at a premium.

I've had it for years.

Which only covers you in connection with your own business, always read the schedule and full contract clauses, fine if you are self employed read your schedule it forbids "commercial travelling" Commercial travelling is defined when the vehicle is used to generate income, which is exactly what's happening if you are using it to work for your employer who is using you to subsidise their poor business plan .
You need class 3 Insurance to use your vehicle in connection with the business of an employer. You will know when you have this as it usually starts around £1500.
My mate was using his car for his electrical company employer, he had business use on the old direct line thingy, he called direct line to check he was covered, they wanted an additional premium of £830, he refused, they retorted on the basis of the information provided in this call we are terminating your insurance contract with immediate effect, the letter was on his door mat next day.
The traffic police are very good these days at establishing what you are doing in the car. They dont do excuses.
Always speak to the company who insure you

Charlie1986

I have business use as a community care assistant, just checked with my insurer and this covers me - it didn't cost anything more either.

cakey

you need the p87 form, you can download it online. you can then claim the difference between what you are paid and 40 pence, providing you meet the criteria it sets out just google p87 it should come up