Business Mileage / Part Year

DanWri

I started working for a company in July 2011 that required me to use my car for business use. The company pays back at the government rate of 45p for the first 10k and 25p there after.

However I am leaving employment on the 17th of this month, so I would not claim a full years allowance.

Every month I claim back 833 miles @ 45p, obviously spread across the year this totals 9996.

When I finish on the 17th I will have claimed back 6664 @ 45p pm and so far 12324 @ 25p pm.

Can I claim the remaining 3336 at 20p pm .. if so where do I claim from the company or the tax office?

Cheers

Dan

pjclar02

Hello Dan

It depends on what your employment contract states in terms of the payments for mileage - this will determine whether the balance is recoverable from your employer.

If it is not - then you can certainly claim tax relief on the underpayments via HMRC.