Claiming Mileage Expenses - Not Self Employed

zygurat789

CeePeeBee wrote: »

morning all, sorry to jump in on the back of somebody's thread.

I'm trying to understand Zygurat's post explaining the situation. My example is slightly different (but I'm sure technically it's the same - my head just hasn't twigged yet).

In previous tax years I've been getting 45p per mile for 10k, and 25p per mile for anything over 10k.

However, this year, they've changed this. I get a car allowance (which I always have) and 16p per mile regardless of the mileage.

I can't find anything relating to car allowance in terms of the mileage calculator on the Gov site, so I'm wondering whether that even pays into it. Obviously a drop of 45/25ppm to 16ppm is quite large, so I'm wondering whether I can claim at all?

Sorry if I'm being slow...I could blame it on it being a Monday..albeit it's Tuesday!

Cheers in advance

If the car allowance is taxed then it doesn't matter what it is called it is salary.
If the car allowances is not taxed then it is paid to you as a reimbursement of expenses, is it not?

CeePeeBee

Brilliant, thanks. So essentially the formula is:

Mileage x standard ppm, - claimed mileage from company - tax = my relief?

zygurat789

CeePeeBee wrote: »

Brilliant, thanks. So essentially the formula is:

Mileage x standard ppm, - claimed mileage from company - tax = my relief?

Mileage x standard ppm, - claimed mileage from company = your relief X 20% = your monetary benefit

CeePeeBee

Hi Zygurat

Thanks for the response. I don't get taxed on the expenses, so can I just run this by you?

For one month for example the following is true:

April Total Miles = 1499 @ 16p = £239.84. Based on the above formula, that suggests I should be claiming 359.76 (and a calc online) from the Gov.....agree?

purdyoaten

CeePeeBee wrote: »

Hi Zygurat

Thanks for the response. I don't get taxed on the expenses, so can I just run this by you?

For one month for example the following is true:

April Total Miles = 1499 @ 16p = £239.84. Based on the above formula, that suggests I should be claiming 359.76 (and a calc online) from the Gov.....agree?

I think that you are using the old rate of 40p - now 45p. Your claim would be for an additional expense of £434.71 and would obtain the tax relief on this at 20% if you are a basic rate taxpayer or 40% if not.

booksurr

CeePeeBee wrote: »

Hi Zygurat

Thanks for the response. I don't get taxed on the expenses, so can I just run this by you?

For one month for example the following is true:

April Total Miles = 1499 @ 16p = £239.84. Based on the above formula, that suggests I should be claiming 359.76 (and a calc online) from the Gov.....agree?

maths?

1499 x 16 = 239.84
1499 x 45 = 674.55

net claim to send to HMRC shown thus: 674.55 - 239.84 = 434.71

amount of cash HMRC will pay you (or amount of tax you will not pay if your code is adjusted instead): 434.71 x (your tax rate) eg: 20% = £86.94

CeePeeBee

Booksurr...So let me get this straight then...my claim would be for the tax on what I would have claimed if I was getting the Gov rate (i.e. 20% or 40%) correct?

Therefore:

Apr-15 Miles = 1499 Gov Rate =£0.45 Company rate= £0.16 Total Claimed = £239.84 - To be claimed from Gov £86.94

purdyoaten

CeePeeBee wrote: »

Booksurr...So let me get this straight then...my claim would be for the tax on what I would have claimed if I was getting the Gov rate (i.e. 20% or 40%) correct?

Therefore:

Apr-15 Miles = 1499 Gov Rate =£0.45 Company rate= £0.16 Total Claimed = £239.84 - To be claimed from Gov £86.94

Slightly odd way of calculating - but it does come up with the correct answer!

CeePeeBee

Thanks Purdyoaten....in that case I'm in for quick the windfall come the end of the year as I average about 2000 miles a month

zygurat789

CeePeeBee wrote: »

Hi Zygurat

Thanks for the response. I don't get taxed on the expenses, so can I just run this by you?

Ah but the question was "are you taxed on the car allowance"?