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sorry about the massivly off topic, dull thread, but here goes...
I currently get paid a mileage allowance (40p per mile) for business miles in my own car. I have heard that when I get over 10000 miles in a year this allwoance will drop.
Does anyone know what it drops to and the exact details of the scheme, i.e can I still claim 40p per mile and get taxed on anything over the lower limit?
cheers
andrew
Slight hijack - I am ordering my first company car in a bit. I get my business miles back at 10p a mile (I pay for diesel upfront). It comes back in my pay. However, the ordering system is saying I need to enter exactly what my private and business mileages will be. I can do the private one ok but no idea about business one. Question is, why does this make a difference? Will I get taxed more if I quote more private mileage? Will I get into bother if my mileage is way different from what I quoted?
Someone did mention I can claim back another 30p a mile, as I only get 10p, from the government. Is that right?
If it's a company car - I don't believe you can claim back any more
The company can pay you what they want but it will attract tax if over the guidelines
http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm
I guess they want to know figures for private & business miles so that they don't over pay you
It's totally unacceptable to ever book private mileage down as business 😉
If you can work out private miles, surely business miles is a simple sum?
You obviously need to do it in arrears
robdob... I've got no idea about the private/business mileage thing, but I suspect it will be to do with making sure it's not a perk and is a business necessity, and would have an effect on the tax rates..
On the mileage claims, you can't claim back the full 30p difference between what you get paid and what the HMRC rates are, but you can claim back the tax that you paid on the difference. I can't remember the form number but the info is there on the HMRC website.
The HMRC rates are what you can claim without attracting tax. So yes, if the company is willing to pay you 40p a mile regardless and you do 20k business miles a year, you'll pay tax on the £1500 difference between what you get paid and the HMRC rate.
but you can claim back the tax that you paid on the difference
Only if you own the car - if it's a company car you can't
robdob - if it's a lease car they would want this info to get an estimate of annual mileage overall,which affects the lease deal
Aaaah... hadn't realised that as my other half gets a car allowance instead of a company car.