Mileage rate above which you pay tax?

[Deleted User]

Pretty sure its 45p a mile isn't it? I run my own business and claim this (for first 10k) and there are no tax implications. This is the HMRC rate I understand.

Wife is looking into a lease car for her job as nhs. Co-ordinator has told her that she'd get 45p mile but because its over 10p a mile (Where this comes from I dont know), she'd have to pay tax on 35p a mile.


Anyone work for the NHS? Isn't the rate something like 56p a mile now (for first 3500). So you'd have to pay tax on 11p because its over 45pm. Wonder if thats what shes thinking.

scragend

It's 45p per mile for the first 10,000, then 25p per mile thereafter, in your own car.

If it's a car provided by your employer, but you are paying for your own fuel, then the fuel-only rates apply. This changes every so often; the current rates are here :

https://www.gov.uk/government/publications/advisory-fuel-rates/advisory-fuel-rates-from-1-september-2015

[Deleted User]

scragend wrote: »

It's 45p per mile for the first 10,000, then 25p per mile thereafter, in your own car.

If it's a car provided by your employer, but you are paying for your own fuel, then the fuel-only rates apply. This changes every so often; the current rates are here :

https://www.gov.uk/government/publications/advisory-fuel-rates/advisory-fuel-rates-from-1-september-2015

Yes I understand that but what if its a car that you pay for under a salary sacrifice scheme.

So not really a company car because you pay towards albeit, I understand, subsidised.

booksurr

[quote=[Deleted User];69532654]Yes I understand that but what if its a car that you pay for under a salary sacrifice scheme.

So not really a company car because you pay towards albeit, I understand, subsidised.[/QUOTE]it is you who misunderstand then and your wife's employer is not talking crock

you need to familiarise yourself with what a salary sacrifice scheme means. Generally the employee gives up a cash element of their pay in return for a non cash benefit in kind

sounds like you misunderstand who owns the car and the implications on her tax as a result as it is, as far as HMRC are concerned, a company car that she will be driving.
read the section entitled....
"Employees taking part in a salary sacrifice scheme will pay benefit-in-kind tax" http://www.fleetnews.co.uk/costs/salary-sacrifice/10-things-to-know-salary-sacrifice

you might also want to read this from a scheme provider specifically set up for NHS clients: https://www.cpcdrive.nhs.uk/salary-sacrifice-cars.html

[Deleted User]

blondebubbles wrote: »

Salary sacrifice cars are treated as company cars for tax purposes.

So the mileage rates that apply to company cars would be applicable.

Right that explains it then. So if the employer wishes to pay 45p a mile then as far as HMRC are concerned only 12-14p is tax free....

ohreally

[quote=[Deleted User];discussion/5360782]Isn't the rate something like 56p a mile now (for first 3500)[/QUOTE]

Yes, it's 0.56ppm and depending on the circumstances its not taxed. The claim form has both tax and non-tax mileage columns, if she's unsure speak with a steward for clarification.