Car Allowance and tax return

Funkyanimal

Hi, not sure if this is the correct thread, Currently I'm using my car as a company car. My company pay me a monthly car allowance and 10p a mile. I have been told by some people that I can still claim the difference of 35p a mile for the first 10000 miles back. Apparently you can do a form if the claim is less the £2500 but last year I did 9500 miles so I would need to fill in a tax return but not sure where I would fill in the required information 

Dazed_and_C0nfused

 I have been told by some people that I can still claim the difference of 35p a mile for the first 10000 miles back. 

They were wrong.

The only place you can claim 45p/mile from is your employer.

You can claim tax relief on 45p/mile from HMRC (less the amount your employer reimburses).

So your claim would seem to be,

9,500 miles x 45p = £4,275 less £950 reimbursed = net claim of £3,325.

As such you will need to claim via Self Assessment.  The details go on the employment page.

The potential tax benefit is anywhere from £0 to £2,000 but for most people it will be from £665 to £1,330.

Funkyanimal

Dazed_and_C0nfused said:

 I have been told by some people that I can still claim the difference of 35p a mile for the first 10000 miles back. 

They were wrong.

The only place you can claim 45p/mile from is your employer.

You can claim tax relief on 45p/mile from HMRC (less the amount your employer reimburses).

So your claim would seem to be,

9,500 miles x 45p = £4,275 less £950 reimbursed = net claim of £3,325.

As such you will need to claim via Self Assessment.  The details go on the employment page.

The potential tax benefit is anywhere from £0 to £2,000 but for most people it will be from £665 to £1,330.

Do you know wmwhere in the tax return this needs to be entered 

Dazed_and_C0nfused

It is on the employment page.  You need to tailor the return correctly to get the employment expenses boxes to appear.

Funkyanimal

I'll have a look look at it again today, looking at this year my mileage is around 6000

General_Grant

Funkyanimal said:

Hi, not sure if this is the correct thread, Currently I'm using my car as a company car. My company pay me a monthly car allowance and 10p a mile. I have been told by some people that I can still claim the difference of 35p a mile for the first 10000 miles back. Apparently you can do a form if the claim is less the £2500 but last year I did 9500 miles so I would need to fill in a tax return but not sure where I would fill in the required information 

I think you are using your own car for business purposes.  It's not a company car.  
What is the monthly car allowance supposed to cover?

Funkyanimal

Im guessing i put the difference amount in the other expense and capital allowance box

sheramber

Funkyanimal said:

Im guessing i put the difference amount in the other expense and capital allowance box

Business travel and subsistence expenses You can only claim for the costs you had to pay to do your job, such as: • travel costs, including related meals and accommodation - do not include your usual commuting costs • the costs of using your own car, motorcycle or bicycle • business expenses, such as phone calls If your employer paid you less than the approved mileage rate for using your own vehicle for work, keep records of your expenses and claim the shortfall in your payments in box 17. Add together your allowable travel costs and business expenses and put the total in box 17.