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Travel Expenses

I have been redeployed and now claim fuel allowance- will this effect my tax payments??? I currently don’t pay tax but am worried this will take me over my allowance as it’s £10 a day.

Comments

  • unholyangel
    unholyangel Posts: 16,866 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    What do you mean fuel allowance? 

    Do you mean a fuel card? Or that they are paying you a fixed amount regardless of how many miles? Or that they are reimbursing you at a rate not above the approved mileage rate/advisory fuel rate (depending on whose car you're using) for actual miles you'll be driving? 

    If you are unsure, you can always ask your employer "is this payment taxable?". Since they are the ones reporting your earnings, they will be able to answer that question with ease. 
    You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride
  • I now claim mileage and it gets paid through my wages (fixed amount per mile claimed) - with claiming an extra £10 a day I’m worried this will push me over my tax threshold. I will speak to HR. Thank you 
  • Jeremy535897
    Jeremy535897 Posts: 10,786 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    As your tax rate can never hit 100%, you will always be better off earning more, unless it also impacts benefits.
  • Aren't you able to claim the  first 10,000 miles at a rate of 45p per mile without it affecting your tax situation?
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