Mileage Expenses

edited 30 November -1 at 1:00AM in Cutting Tax
4 replies 689 views
Gary_Moore_2Gary_Moore_2 Forumite
17 Posts
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edited 30 November -1 at 1:00AM in Cutting Tax
Hi all,

I am a passenger in a workmates van, We travel 505 miles a week and split the fuel costs 50/50.

He claims mileage @ 45p a mile and therefore avoids paying tax on some £270+ a week of his earnings. Can I make the same claim or am I unable to claim anything?

I would also like to point out that I spend up to £110 a week on fuel and have no way to prove this as he keeps all of the fuel receipts.

Please Help

Cheers.

Replies

  • jimmojimmo Forumite
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    Not too sure what you are asking here but can I point out that if your workmate is entitled to claim tax relief on his travelling expenses then the chances are that you to are entitled to claim for yours. However you chose to use a mode of travelling that produces no receipts (tickets) nor any other evidence of you incurring travelling expenses.

    So if you want to claim tax relief you will have to demand receipts from your workmate.

    Your workmate chooses to travel in his van and, under the mileage allowance scheme, he is not required to keep receipts. He just has to maintain a simple record of business travel. However he should also maintain a record of your contributions and reduce his claim by the amounts you pay him.

    If he does that he should have no problem giving you receipts but if he doesn‘t any receipts he gives you will be evidence of him fiddling his taxes.
  • redpeteredpete Forumite
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    HMRC allow up to 45p a mile against tax liability for miles travelled in a vehicle; this is in recognition of the costs of using the vehicle for the journey. Two people in the same car cannot claim the same expenses - it doesn't cost twice as much because there is a passenger in the van..

    As he is getting back 20-40% of the running costs (including fuel costs) you might want to ask him if he would share some of the benefit so that you pay less .
    loose does not rhyme with choose but lose does and is the word you meant to write.
  • Caz3121Caz3121 Forumite
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    Is this true business miles or travel to/from work. HMRC do not allow the tax relief on commuting. If these are business miles, does your employer not pay any mileage rate for this (and the delta claimed in tax relief?)

    As the relief changes - 45p for the first 10,000 miles then 25p per mile, this will average out
    example, 46 weeks @ 505 miles = 23,230 miles
    10,000 @ 45p = £4,500 + 13,230 @ 25p = £3,307.50 = £150 per week over the full year
    = tax saved £30 per week @ 20% rate of £60 per week @ 40% tax rate
    This assumes that these are not commuting miles and the van is not a company van and the employer pays nothing

    The tax relief is incurred for wear and tear and running of the vehicle
    Assuming the fuel cost is £220 per week
    you are paying £110 and he is paying £110 but able to claim back £30/£60 per week to cover insurance, maintenance, road tax etc
  • jamesmljamesml Forumite
    265 Posts
    Ok, firstly - if he is claiming 45ppm then there is no tax relief, there are corss purposes going on here.

    Secondly - he is taking you for a ride - literally and metaphorically. If he is claiming the expenses then there is no need for you to contribute to fuel costs, because he is being repaid his motoring costs by your employer! The point of claiming mileage is to recompense the driver/owner of the vehicle for the costs of using it - so his company are alreadypaying for his fuel! The fact that you are paying half the fuel means you are just lining his pockets!!

    If he reclaims 45ppm then you should not be paying for half the fuel!

    Oh, btw - if you carry a passenger you can claim an additional 5ppm, so he could actually claim 50ppm.
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