Business Miles - Own Car...

StuieUK34

Afternoon all,
This could have been answered already posts, but need to ask it my way kinda thing!

Working for a small company, doing a sales job so am always on the road...... Use my own car and claim back mileage.....
Now, are there any Tax implications on the above ?

Lets say i cover 20000 business miles in a year in my car....
As far as i can tell, the rules state that i can claim 10000 miles at .45p and at .25p thereafter... so total i get is: £7000
Can i claim tax relief on that ? (whatever that means!)

Does my boss pay any tax on that??
What if my boss steps away from the HMRC guidelines, and decides to provide me with a Fuel card, pay me .38p a mile, regardless of how many miles... so in this case, 20000 miles would give me £7600 total... which i guess covers my personal mileage - (minus) what i put in at the pump
Are there any tax implications for doing that ?
Just curious as to how it all works ?
I read somewhere that if u do over 14000 business miles in your own car, u can be taxed ?!

jennifernil

You are allowed the 10k @45p and the rest @25p tax free.

If you get more then the excess is taxable.

If less, you can claim tax relief on the shortfall

Read here....

http://www.hmrc.gov.uk/mileage/employee-factsheet.pdf


"I read somewhere that if u do over 14000 business miles in your own car, u can be taxed ?! "

never heard of that.

ceeforcat

Your boss will pay no tax on the payments but the amount will reduce his or his company's profits.

In your example where you receive £7600, you will pay tax on £600 being the excess.

Your last sentence is a complete myth.

PaulCooper

Don't forget that you can also claim tax relief on the interest on any loan that you have taken out to buy the car
Paul

rs65

PaulCooper wrote: »

Don't forget that you can also claim tax relief on the interest on any loan that you have taken out to buy the car
Paul

Can you? Even as an employee?

I've had a look at HMRC website and can't find anything about this.

withabix

PaulCooper wrote: »

Don't forget that you can also claim tax relief on the interest on any loan that you have taken out to buy the car
Paul

No, you can't as an employee.

StuieUK34 wrote: »

What if my boss steps away from the HMRC guidelines, and decides to provide me with a Fuel card, pay me .38p a mile, regardless of how many miles... so in this case, 20000 miles would give me £7600 total... which i guess covers my personal mileage - (minus) what i put in at the pump
Are there any tax implications for doing that ?

Not sure what you mean here.

Are you suggesting that your employer will give you a fuel card to cover all fuel AND give you 38p per mile on top of that?

Or, are you just suggesting that he will give you a fuel card and nothing more (and that you have a gas guzzler that uses 38p/mile)?


If he gives you a fuel card, that is treated just like reimbursing you for your fuel. The difference between the HMRC guidelines and the cost of the fuel would earn you tax relief. You would be taxed on the private mileage fuel and you will need to complete a Tax Return every year.

If he gives you a fuel card AND 38p per mile on top of that, there will be tax implications, because you will be receiving far more than the HMRC rates of 45p/20p per mile.

The most you can get without having to pay any tax is 45p for the first 10,000 miles per tax year and 20p over and above that. Exceed those figures and you will be liable for tax at your highest rate.

Does your employer pay you a fixed car allowance on top of this in your salary?

PaulCooper

You can certainly claim the relief on interest on a loan to purchase a car as a Director (has to be used for company business). I claim 50% as I also use the car for personal reason. I therfore suspect you can as an employee, I have seen the relevant clause from the Taxman somewhere, they don't publicise it a great deal
Paul

withabix

As a Director, yes, as an Employee, no.

AIFOP

I am in a similar position to PaulCooper, i.e. Director/Car Loan/50% personal use/50% business use.

However, I do not currently claim tax relief, I have searched the internet and I am struggling to find any information.

Could anyone point me in the right direction?

BoGoF

Is this a company car or your own car?

AIFOP

BoGoF,

I opted out of the company car scheme and have purchased my own car. For which I have taken out a loan.