Mileage allowance relief

ANGELFLOWER

I recently started an employed job where I am being paid mileage at 26p a mile. I understand I can claim relief for the miles travelled as the allowed rate is 45p. With the end of the tax year just passed I am looking at filling in my self assessment (I am employed as well as self employed). I know the miles I have travelled for the year for my employment, but due to my pay dates I have not actually been paid for all of the March miles yet, so these span the tax years? How do i claim the MAR? Is it miles done x 45p, minus miles paid x 26p? even though there is a difference in the number of miles since my employer hasn't actually paid them all to me, although the pay is promised? Hope this makes sense. Thanks.

penners324

Miles paid x 45p minus miles paid x 26p

Bookworm225

you will claim the difference between what you were actually paid and what you should have been paid 

so using your mileage log: (total miles x45p) - (total miles x26P) = mileage cost to be claimed.

that assumes your total mileage for the tax year remains less than 10,000 miles (ie all will be at 45p)

400ixl

Isn't it that you can claim your marginal tax back against the difference, not that you can claim the difference between the two.

So you can claim back either 20% or 40% of 19p per mile in this case depending on what tax bracket you are in.

Nomunnofun1

400ixl said:

Isn't it that you can claim your marginal tax back against the difference, not that you can claim the difference between the two.

So you can claim back either 20% or 40% of 19p per mile in this case depending on what tax bracket you are in.

If you put that on the return you would get 20% of 20% of the difference! 

On the return you claim the full mileage x 19p in this case to achieve the relief at the marginal rate. 

Grumpy_chap

ANGELFLOWER said:

I recently started an employed job where I am being paid mileage at 26p a mile. I understand I can claim relief for the miles travelled as the allowed rate is 45p. With the end of the tax year just passed I am looking at filling in my self assessment (I am employed as well as self employed). I know the miles I have travelled for the year for my employment, but due to my pay dates I have not actually been paid for all of the March miles yet, so these span the tax years? How do i claim the MAR? Is it miles done x 45p, minus miles paid x 26p? even though there is a difference in the number of miles since my employer hasn't actually paid them all to me, although the pay is promised? Hope this makes sense. Thanks.

Claim for the March miles in the tax year that the claim was accrued.  Not paid.

You will claim 19 pence per mile and that will reduce your income tax liability by 3.8 pence per mile (basic 20% rate) or 7.6 pence per mile (40% rate)

ANGELFLOWER

There is a difference in what I am being told here, which is my confusion too.
Any more insight into this, and what is correct?
Is is what I have travelled, minus what I have been paid? e.g. travelled 5000 miles x45p - 4500 miles x26p, due to not being paid all the miles by end of tax year due to payment dates.
or
What I have travelled, minus what I should be paid? 5000 miles x 45p - 5000 miles x 26p. Not taking into account payments received by end of tax year.

Thanks.

Nomunnofun1

ANGELFLOWER said:

There is a difference in what I am being told here, which is my confusion too.
Any more insight into this, and what is correct?
Is is what I have travelled, minus what I have been paid? e.g. travelled 5000 miles x45p - 4500 miles x26p, due to not being paid all the miles by end of tax year due to payment dates.
or
What I have travelled, minus what I should be paid? 5000 miles x 45p - 5000 miles x 26p. Not taking into account payments received by end of tax year.

Thanks.

The second option is exactly as Grumpy Chap advised - 5000 x £0.19 and is correct. 

Bookworm225

ANGELFLOWER said:

There is a difference in what I am being told here, which is my confusion too.
Any more insight into this, and what is correct?
Is is what I have travelled, minus what I have been paid? e.g. travelled 5000 miles x45p - 4500 miles x26p, due to not being paid all the miles by end of tax year due to payment dates.
or
What I have travelled, minus what I should be paid? 5000 miles x 45p - 5000 miles x 26p. Not taking into account payments received by end of tax year.

Thanks.

where is the difference?
I said using your mileage log: (total miles x45p) - (total miles x26P) = mileage cost to be claimed.

so 5,000 x 45 - 5000 x 26 which is the same as 5,000 x 19p = cost to be claimed 


the date you physically receive the cash is irrelevant. Your expense claim is based on when you did the mileage

ANGELFLOWER

Bookworm225 said:

ANGELFLOWER said:

There is a difference in what I am being told here, which is my confusion too.
Any more insight into this, and what is correct?
Is is what I have travelled, minus what I have been paid? e.g. travelled 5000 miles x45p - 4500 miles x26p, due to not being paid all the miles by end of tax year due to payment dates.
or
What I have travelled, minus what I should be paid? 5000 miles x 45p - 5000 miles x 26p. Not taking into account payments received by end of tax year.

Thanks.

where is the difference?
I said using your mileage log: (total miles x45p) - (total miles x26P) = mileage cost to be claimed.

so 5,000 x 45 - 5000 x 26 which is the same as 5,000 x 19p = cost to be claimed 


the date you physically receive the cash is irrelevant. Your expense claim is based on when you did the mileage

Thanks for your reply. Sorry, I thought the first post was different as it states 'Miles paid x 45p minus miles paid x 26p'.  I took that to mean I had to have received the payments of 26p per mile for them to be counted. I missed Grumpy_chaps answer too, as I must have been posting at the same time.
Your reply helps me understand that it doesn't matter when I receive the cash. I should be looking at when the expense occurred.
Thanks everyone for your help.