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Am I higher rate tax payer for tax reclaiming purposes
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rlzzzz
Posts: 50 Forumite
in Cutting tax
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
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
0
Comments
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the 40% bracket start for salaries (after pension deduction) of 42,475 that is 7475 + 35,0000
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Ohhh well that's good, I didn't realise the 35k stated was plus the personal allowance.
Thanks0 -
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.0
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