Claiming tax relief on mileage for the 1st time...

englandbaby

Hi
This is my year of having a car allowance and using my own fuel. I know there is a form that I can fill in but is there a quick calculator that I can work out what I will receive?
Am I correct in saying that the first year you receive it back as a refund and then they amend your tax code?
If they amend your tax code and you get more money each money, does that mean it could take me over the threshold for losing my child benefit or am I missing something???
thanks
C x

kitty1801

I don't know of a calculator, but the info you need can be found at http://www.hmrc.gov.uk/incometax/relief-mileage.htm. You get tax relief at your highest rate of tax. You are correct with the refund/coding statement.
If your coding is amended you are not getting more money, but paying less tax. Your income is still the same but you need to deduct your business expenses (mileage allowance) from it to work out your net statutory income (NSI) for child benefit purposes.

larat

If you go myowncar.co.uk, they have a mileage calculator where you can keep track of how much your work owe you. I'd recommend that one.

nomunnofun

englandbaby wrote: »

Hi
This is my year of having a car allowance and using my own fuel. I know there is a form that I can fill in but is there a quick calculator that I can work out what I will receive?
Am I correct in saying that the first year you receive it back as a refund and then they amend your tax code?
If they amend your tax code and you get more money each money, does that mean it could take me over the threshold for losing my child benefit or am I missing something???
thanks
C x

It will have absolutely no effect on your child benefit or any other means tested claims for that matter as they invariably use taxable pay. Any refund for legitimate car expenses is not taxable income.