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Am I higher rate tax payer for tax reclaiming purposes

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Hi all

I get paid a car allowance and 15p per mile for business mileage, I've been reading up that I can claim back the tax on up to 45p per mile but I'm not sure if I would do this at 20% or 40%.

My basic salary is 30k with a car allowance of £5271 so this technically takes me into the 40% tax bracket (but only just), does that mean I can claim back 40% of 30p a mile even though most of my car allowance would be taxed at 20%?

Thanks

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    the 40% bracket start for salaries (after pension deduction) of 42,475 that is 7475 + 35,000
  • rlzzzz
    rlzzzz Posts: 50 Forumite
    Tenth Anniversary Combo Breaker
    Ohhh well that's good, I didn't realise the 35k stated was plus the personal allowance.

    Thanks
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Thing is you don't need to know what tax rate you are.

    you need to know what amount is allowable as a deduction.

    You stick the number in the return as a deductable and it sorts itself out at the end when the tax is worked out.
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