Using your own car for work

cherrytown

I have to use my own vehicle for business miles for work. I am paid 37p per mile and do not receive any additional money i.e monthy car allowance. Can anyone tell me if i could claim a tax rebate and if so what form would i need to use?
Many thanks :j

jennifernil

Yes, this tax year you are allowed relief on 45ppm for the first 10k miles, then 25ppm.

You can reclaim after the end of the tax year, the form is P87 I think.

BoGoF

There is also the potential to owe tax if your mileage is over 10,000 and your employer has reimbursed 37p for all mileage.

real1314

cherrytown wrote: »

I have to use my own vehicle for business miles for work. I am paid 37p per mile and do not receive any additional money i.e monthy car allowance. Can anyone tell me if i could claim a tax rebate and if so what form would i need to use?
Many thanks :j

HMRC allow 45p per mile for up to 10,000 miles; above that it's 25p per mile.

You can claim back the tax paid on the difference between what you got paid and what HMRC allow:-

i.e You did 6000 miles at 37p and got £2220 ; but HMRC would have allowed 6000 x 45p = £2700.

The difference is £480; but you don't get that; you get the tax you paid on £480; £96 at 20% basic rate or £192 at 40% rate. :cool:

BoGoF

But remember the 45 ppm only applies from 6 April 2011, prior to that it was 40 ppm.