Claiming Mileage for Work

Passportboy

notanewuser wrote: »

You're claiming the tax back, so no, it won't be taxed.

It's likely you'll get a cheque and a raised tax code for next year (to cover it assuming all stays the same).

When you say a raised tax code - does this mean I will pay more tax next year, or wont be able to claim back again..?

spacey2012 wrote: »

Any good accountant will tell you if you think you can run a car for less than £1 a mile, you are mad.
What happens when it drops to bits ?
What happens when the car you bought say for £5k is knackered and you need £5k for another reliable work horse.
Can you see where you are subsidising this employer from the wage they pay you ?

HappyMJ wrote: »

Maybe OP is paid £5,000 a year more than the another person doing a similar job. As I said earlier I would never subsidize an employer using my own car unless I at least got the full HMRC rates...it would form part of my salary negotiation before taking a job on. If they only paid 13p/mile then I would insist they provide the car and I pay them 13p/mile for any personal mileage on the car.

I can see what your saying guys - and Ideally I would love a company paid car with a fuel card so I pay nothing...

I did have this at my old job and paid a lot in tax! I do love your attitude, but when the employer said so what can you do? I know you said you would not take the job - but for me it was almost a £10,000 pay rise and much better prospects..! So for that amount would you have really turned it down..? Also - i know I will have to buy a new car, but so does everyone right? So if you treat it well and dont be silly then how is it different to anyone else.

Perhaps you guys are on jobs where you can dictate pay and conditions - I regret I am not!

Passportboy

spacey2012 wrote: »

The HMRC rates are based on the days when fuel was £2.80 a gallon, it's £6.20 now.

I wonder if they will ever go up..?

notanewuser

Passportboy wrote: »

When you say a raised tax code - does this mean I will pay more tax next year, or wont be able to claim back again..?





!

No. Say you're claiming back £1000 for this year's mileage. They'll increase your tax code so that you pay £1000 less in tax next year automatically. Obviously if you do more or fewer miles you'll need to do a reassessment anyway.

HappyMJ

Passportboy wrote: »

When you say a raised tax code - does this mean I will pay more tax next year, or wont be able to claim back again..?

I can see what your saying guys - and Ideally I would love a company paid car with a fuel card so I pay nothing...

I did have this at my old job and paid a lot in tax! I do love your attitude, but when the employer said so what can you do? I know you said you would not take the job - but for me it was almost a £10,000 pay rise and much better prospects..! So for that amount would you have really turned it down..? Also - i know I will have to buy a new car, but so does everyone right? So if you treat it well and dont be silly then how is it different to anyone else.

Perhaps you guys are on jobs where you can dictate pay and conditions - I regret I am not!

The raised tax code means you get paid more each week and get a lower lump sum back next year. You don't have to accept it you can go back onto the standard tax code.

30,000 miles is a lot of miles.....7 years and the car is almost end of life....doing 10,000 miles a year commuting and the car could last 10 years. £10,000 extra....no I'd negotiate and say well forget about the full £10,000 increase make it £5,000 and give me a fully expensed car instead. Anyone can dictate pay and conditions. If you are a good employee then they will meet your demands.

Passportboy

So next year I will have to do a self assessement..! To be honest I think I will just keep the same tax code and do another claim.

Yes Happy MJ - I can see your point, but alas I work for a small company and they are not going to change, especially for one employee!

HappyMJ

Passportboy wrote: »

So next year I will have to do a self assessement..! To be honest I think I will just keep the same tax code and do another claim.

Yes Happy MJ - I can see your point, but alas I work for a small company and they are not going to change, especially for one employee!

They would for me....maybe it's my negotiation skills. A car for you is a required to do your job...the employer is responsible for providing what you need to carry out your job or paying you for the use of your car. If you were self employed then I'd understand but you are an employee but providing your own car to do the work and not being paid enough to even cover the running costs and losing out on all those national insurance payments which you can't get back. If the employer provided a car they would also save on employers national insurance contributions which are 13.8%. That's a massive saving to the employer. If they reduced your salary by £5,000 they would save not only the £5,000 but also the £690 a year in secondary class 1 contributions as well as saving £3,900 a year in your 13p/mile expense claim and the car would hardly cost them anything. You get a car saving on your personal vehicle expenses and class 1 contributions. They can lease a car for you on a short term 24 month lease it's a business expense.

Passportboy

HappyMJ wrote: »

They would for me....maybe it's my negotiation skills. A car for you is a required to do your job...the employer is responsible for providing what you need to carry out your job or paying you for the use of your car. If you were self employed then I'd understand but you are an employee but providing your own car to do the work and not being paid enough to even cover the running costs and losing out on all those national insurance payments which you can't get back. If the employer provided a car they would also save on employers national insurance contributions which are 13.8%. That's a massive saving to the employer. If they reduced your salary by £5,000 they would save not only the £5,000 but also the £690 a year in secondary class 1 contributions as well as saving £3,900 a year in your 13p/mile expense claim and the car would hardly cost them anything. You get a car saving on your personal vehicle expenses and class 1 contributions. They can lease a car for you on a short term 24 month lease it's a business expense.

Sorry - I did fail to mention in my pay they give me a £4000 car allowance...

spacey2012

Transport is a tax deductible event for an employer.
Anyone who can not balance the books to provide transport is relying on the employee to dip in to their own pocket.
As said the HMRC rate is years out of date and even on that basis it should be the absolute minimum rate an employer pays.
13p a mile ?
That is taking the **** in style.

HappyMJ

Passportboy wrote: »

Sorry - I did fail to mention in my pay they give me a £4000 car allowance...

Even better....I valued a car at £5,000 a year and they value it at £4,000.....give it back and get a car you will be much better off.