Own Car mileage tax perk. Fact?

Scooter27

Hi,

Another work colleague of mine said tht I could claim tax back on the following scenarios - I just don know how or why:


I had my own car and did 9500 miles and got paid 45p per mile in the tax year. He said he claims appx this on a tax form and gets a small amout back.

He also stated that where I am using my own car and claim 15p per mile (because I went over 10k miles) - i anclaim the difference.

Any help would be much appreciated......

ceeforcat

Scooter27 wrote: »

Hi,

Another work colleague of mine said tht I could claim tax back on the following scenarios - I just don know how or why:


I had my own car and did 9500 miles and got paid 45p per mile in the tax year. He said he claims appx this on a tax form and gets a small amout back.

He also stated that where I am using my own car and claim 15p per mile (because I went over 10k miles) - i anclaim the difference.

Any help would be much appreciated......

Yes - you can claim the difference between 10p and 25p per mile on the amount above 10000.

Dirk_Gently_2

Not quite the difference - you can claim back the tax you paid on the difference.

The equation is Total Miles * ((HMRC rate per mile) - (Rate you got per mile)) / Tax rate (25% or 40%)

Look here for the details http://www.hmrc.gov.uk/incometax/relief-mileage.htm#2

ceeforcat

Dirk_Gently wrote: »

Not quite the difference - you can claim back the tax you paid on the difference.

The equation is Total Miles * ((HMRC rate per mile) - (Rate you got per mile)) / Tax rate (25% or 40%)

Look here for the details http://www.hmrc.gov.uk/incometax/relief-mileage.htm#2

Well - You would certainly claim relief for the difference but I take your point that some may be confused that the full claim, and not merely the tax relief thereon, may be winging its way to the claimant.

HappyMJ

Scooter27 wrote: »

Hi,

Another work colleague of mine said tht I could claim tax back on the following scenarios - I just don know how or why:


I had my own car and did 9500 miles and got paid 45p per mile in the tax year. He said he claims appx this on a tax form and gets a small amout back.

He also stated that where I am using my own car and claim 15p per mile (because I went over 10k miles) - i anclaim the difference.

Any help would be much appreciated......

Using your own car for work is not a perk. You are subsidizing your employer saving them the cost of leasing a car for you to use. If you are doing in excess of 10,000 miles in a tax year you really should be discussing with your employer to provide a vehicle for you to use. The extra mileage added onto your own car depreciates it added to the cost of the extra time you now need to take off to do additional maintenance such as replacing the tyres more often or simply getting it services more regularly adds up. A fully maintained company car can be looked after by the leasing company relieving you of this task. Do you also have business use on your insurance? Does it cost any more than normal Social Domestic Pleasure + Commuting (SDP+C) insurance?

Scooter27

00ec25 wrote: »

the OP is indeed confused about cars - in his other thread he states he already has a company car at 15ppm
noww claiming he uses his own at 45ppm

which is it OP or are you fishing?

Not confused at all ! I am asking 2 questions which are different. And Im not claiming NOW use my own at all.


If you were as good as you think.......maybe you would forwrd think.


FYI - Ive had a compny car for 1 year............hence Question 1. and guess what I had beofre that....yep .....my own car......hence question 2....knowing u can claim back 5 years......I touht I would ask........but thanks for your help......:T

Caz3121

Scooter27 wrote: »

Hi,

Another work colleague of mine said tht I could claim tax back on the following scenarios - I just don know how or why:


I had my own car and did 9500 miles and got paid 45p per mile in the tax year. He said he claims appx this on a tax form and gets a small amout back.

He also stated that where I am using my own car and claim 15p per mile (because I went over 10k miles) - i anclaim the difference.

Any help would be much appreciated......

The rates are currently 45p per mile for the first 10,000 miles then 25p per mile on the rest
If you were paid 45p per mile for the first 10,000 then there is no tax relief to claim
If you received 15p per mile on the rest, you can claim the tax relief between 25p and 15p so tax relief on 10p. If you are a 20% taxpayer this would equate to 2p per mile back (on the miles over 10,000)