Tax on private car mileage - cashback?

dougsta

My company pays me 35p per mile for using my private car for company
business. The inland revenue approved mileage rates are 40p per mile for the
first 10,000 miles and 25p thereafter without paying any tax. I do less than
10,000 miles per annum.

Can I claim back the difference of 5p per mile from the tax-man?

If so - even at only 5000 miles per year this amounts to a £250 "cashback".

Thanks

Doug

Ref: for Inland Revenue rates
http://www.admin.ox.ac.uk/salaries/benefits/payexpben.shtml
Section 3.2.4

ctm_2

Kind of.

You can claim the difference between the approved rates and the amount you actually got as tax relief.

Do for 5000 miles:
Approved rate of 40p x 5000 = £2000
You got 35p x 5000 miles = £1750
Difference = £250

So you can claim releif on the £250. Note that you won't be given £250, only £250 x your highest rate of tax. So if you are a higher rate taxpayer you will get £250 x 40% = £100, or if a basic rate tax payer, £250 x 22% = £55

sneekymum

worth having though...

dougsta

Thanks all - top stuff, much obliged

mpet

Hi

From my own claims, Mileage allowance is exempt from tax

http://www.hmrc.gov.uk/manuals/eimanual/EIM31235.htm - step 3

I use my own car for travelling to meetings etc. My employer pays me 21p per mile. The HMRC amount is 40p. I claim the difference on my self assessment return. If you don't complete a self assessment, you can write to HMRC when you receive your p11D which will detail the amountyour company has paid you.

In past years this has been great as I got approx £400 each year from the tax man. However, they've gotten wise and adjusted my tax code - so no doubt next year I will owe them!!

Mpet

dougsta

Phoned 'em up, got the form (for 04-05 tax year), filled it out - easy peasy.

I also enquired about previous tax years - they told me to just put the info into a letter to accompany the form - which I did. They've since adjusted next year's tax code so I will pay less tax.

Marvellous

inmypocketnottheirs

Just for clarification the rates are 40p for the first 10000 miles per annum, then 25p per mile thereafter.