Staff Mileage Allowance

Aquamania

Mistral001 wrote: »

I was specifically taking about mileage and the notion that if you get paid 25p per mile you can claim back the difference between that and 45p per mile from HMRC which of course you can not do (not legally anyway).

But you could claim tax relief on that difference
(up to a maximum of 10,000 miles per year)
That relief could be worth as much as 45% of the difference depending on your tax rate.

Your employer can also pay you 5p per mile extra for every employee passenger you also necessarily carry on such business journeys, but there is no tax relief on this additional allowance if your employer pays less than this additional 5p (or even none at all)

Mistral001

Aquamania wrote: »

But you could claim tax relief on that difference
(up to a maximum of 10,000 miles per year)
That relief could be worth as much as 45% of the difference depending on your tax rate.

Your employer can also pay you 5p per mile extra for every employee passenger you also necessarily carry on such business journeys, but there is no tax relief on this additional allowance if your employer pays less than this additional 5p (or even none at all)

If you have not received 45p per mile then you cannot claim tax relief at 45p per mile. It is as simple as that.

Aquamania

Mistral001 wrote: »

If you have not received 45p per mile then you cannot claim tax relief at 45p per mile. It is as simple as that.

You can claim tax relief on the difference ... and it's entirely legal

For example, you use your own car for 900 business miles and your employer pays you 30p per mile. The approved amount is £405 (900 times 45p). The allowance you get from your employer is £270 (900 times 30p). Your Mileage Allowance Relief is £135 (£405 less £270). The Mileage Allowance Relief will reduce the amount of income you pay tax on, so your tax bill will reduce by £135 at 20% (if you're a basic rate taxpayer) or at 40% (if you're a higher rate taxpayer) and at 45% (if you're an additional rate taxpayer)

http://www.hmrc.gov.uk/incometax/relief-mileage.htm

It is, as you say, as simple as that

Mistral001

Aquamania wrote: »

You can claim tax relief on the difference ... and it's entirely legal


http://www.hmrc.gov.uk/incometax/relief-mileage.htm

It is, as you say, as simple as that

Well that is a surprise.


It seems to be a charter for employers underpaying staff allowances and expecting the tax-payer to make up part of the rest. I suppose self-employed can claim 45p if they do the miles. The rule is probably there so that employed people get same allowances as self-employed.