Explain Mileage Allowance Relief

jennifernil

RainMaker wrote: »

What is the tax situation if an employer pays less than the 40p / mile allowed by HMRC ? Can this be treated as a loss and offset against earned income ?

You can claim tax relief on the full 40p/25p.

Put down the miles x 40p, subtract the amount you received tax free, and claim the tax relief on the difference

drawlings

I am due to claim back my mileage allowance for 2008/2009 very soon, but I have a few questions first.

1) My company basis it's ppm on the current fuel price, so while is was high, I was getting 0.17 ppm and now price has dropped I get 0.15 ppm. My question is will I have to fill out 2 seperate forms for the deffernt ppm?

2) I have a personal loan out for my car, I was once told that you can claim a percentage back of loan based on the percentage of the car used for business. How true is this?

Thanks for your help

Dan

MR_GG

Hi people sorry new to all this my company pay me 620 per month as car allowence and they pay my fuel as i do alot of mileage how do i stand on tax is there a set amount of miles i need to do? do i have to claim anything back

thanks in advance

mjemery

Hi i am a VAT registered Self Employed Courier. Presently i Rent a Van at £150 per week, and drive around 2,000 miles a week. My question is as follows. If my milage is 2000+ business miles a week am i allowed to claim Mileage Allowance Scheme ie 40/25p.
Or do i have to reclaim the VAT on my rental and fuel. Or do i choose. I believe that with my milage it would be better to claim Mileage Allowance Scheme. The other question is that i reclaim my VAT presently every 3 months and get a nice rebate, would i do the same under the Mileage Allowance Scheme or would it be end of year. And would it be cash in the bank? Thanks

chalkie99

Someone will be along shortly, no doubt, to explain the mileage allowance better than I can but, having done many years in the industry, I am intrigued how you are making a living on those figures, especially when including hire and reward insurance, etc, and how are you getting a rebate on VAT unless you are running at a loss?

jimmo

In Income Tax terms I find it very hard to believe that someone who pays out £150 a week for van rental would benefit from relinquishing his claim for tax relief on that £150 per week plus fuel costs in exchange for the HMRC rates of 40/25 pence per mile.