Business Mileage - what am I entitled to?

Gadget_2

Hoddie wrote:

The official rate is 40p/mile for the first 10,000 and 25p/mile thereafter. You can claim tax relief on the difference of what the company pays (if anything) and the official rate. If the company paid nothing, you'd be able to claim 22% of 40p/mile.

If the company paid 13p/mile, you could claim 22% of 27p/mile. This would be the better way as you'd get 19p/mile (as opposed to 9p/mile if the company paid nothing).

3. The adjustment would simply be expenses (EXP).

4. No.

Thanks Hoddie that is what I thought as well, but after her boss telling her different I thought I might be missing something.

I think her boss will be getting a pretty hard time of it when all the carers in his employment get told this news.

ATB

Gadget

jennifernil

That is a disgrace, why should an employer expect an employee to use their own car to earn money for the company without any compensation for the cost of the fuel?
I hope your wife at least gets some type of car allowance.

shaz77_2

Can a person claim tax relief if they pay a friend to drive them into work each morning? If so what needs to be produced to the Inland revenue?

Gadget_2

jennifernil wrote:

That is a disgrace, why should an employer expect an employee to use their own car to earn money for the company without any compensation for the cost of the fuel?
I hope your wife at least gets some type of car allowance.

That's exactly what we thought as well, the thing is my wife has approached her boss about this in the presence of a supervisor and was told she would now be better off as it would mean she was getting 21p/mile, her supervisor even said do you think we would let him get away with giving us less money, this is why I came and asked here as I began to think I was missing something big time.

Her boss is adament he is right when he is clearly wrong, my wife is going to approach him again this morning armed with facts and figures and is going to ask him to show her how it works out at 21p/mile when it is clearly only 22% of 40p = 8.8p and if as we allready know she is being short changed to the tune of around £500/year by his change is policy then she will be letting eveyone at the meeting tonight know about it as she is not one of the highest losers in this as many of her colleagues are doing more miles and will be losing even more money.

I personally can't believe that the 30 or so people in her company that this affects are not aware that they are losing money to this extent as it's not as though they are that well paid to subsidise his company to the excess of £15K.

chief

Dont want to jump over your thread, but I am a bit confused! I use my car occasionaly for work purposes.
I do approx. 1000 miles a year business use. I am a 22% tax-payer. I get my
mileage reimbursed by my company at 40p a mile. Am I entitled to tax refund?

Thanks.

Gadget_2

chief wrote:

Dont want to jump over your thread, but I am a bit confused! I use my car occasionaly for work purposes.
I do approx. 1000 miles a year business use. I am a 22% tax-payer. I get my
mileage reimbursed by my company at 40p a mile. Am I entitled to tax refund?

Thanks.

Short answer is no, as you're being fully reimbursed. You can only claim back if you get less than 40p/mile. If you got 25p/mile you could claim back 22% of 15p/mile.

:rotfl: But on a lighter note my wife is jumping up and down saying you lucky so and so getting 40p/mile and as for wanting more the cheeky ***.:rotfl:

After her meeting this morning her boss is going to his Tax advisor as it seems he has been missled or has missunderstood previous advice.

jennifernil

chief................If your 40p per mile is paid without tax deducted then that is it. But if it has been taxed under your PAYE then you can reclaim the tax.

jennifernil

shaz77.........travel to a permanent place of work is not tax deductable, it is considered as private travel.

chief

Meant to add that it was without any deductions, just get a full payment into my bank account. Thanks for the advice.

Hope your wife's boss gets the right advice himself this time!

The_Governor

That's interesting Altarf.

How would you prove you didn't go via your office though?

I have the exact situation you describe, in that my commute is 30 miles, but I can only claim the distance between the offices of 30 miles, although the actual journey straight to the other site there is 55 miles, if I don't go via my main base.

As all of my expenses are claiming for the distance between the offices, how could I show one way or another that I went straight to the second location, as opposed to making the journey from my main office?

Do the tax office not check whether or not you went straight there? And if they did check, how could you prove it?