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Yeah but Steve he's paying £1kpa for a car he doesn't want or need, that's the point.
^ Wot Molgrips says! If I didn't need the car for work I wouldn't have one as the missus has a nice Golf GTI which to be frank is a lot more fun than my TDI Passat 😉 We do use mine as its cheaper to run than hers but before this job I didn't have a car and went out and bought the Passat the weekend before I started.
Does your contract say you have to have a car? If not tell them you're selling it and won't be replacing it. They'll either have to provide you one or negociate... Done.
Contract?? Thats another thing thats not happened yet!
Spongebob - did 8746 business miles in 2009/10. Claimed tax relief at 40% on 40p x 8746. Worked out as a cash rebate of around £1400, which more than paid for the 40% tax on the fuel used for personal miles
I'm not sure that you can have done the sums right. Is a five year old car really depreciating at 15%pa? Not sure I've quite grasped the repayment bit either - have you allowed for the residual value after two years? If you're expecting the mileage rate to pay off the car loan in two years then I think that's a trifle unrealistic, but you'll be quids in in year three 🙂
Mike_D
Who you refering to? Me?
Fuel card for personal and private fuel, taxed as income.The trick in this situation is to document business mileage and claim tax relief at 40% on 40p per mile (do less than 10k miles). This tends to pay for the tax on the fuel card, so free personal mileage.
So even if you have a fully funded fuel card, you can claim the tax back based on 40p/mile?
How far back can you claim?
Uplink - the amount I spend on the fuel card is reported on my P60 as untaxed earnings - it is not related at all to business/private mileage. It's just seen as extra income. It gets entered into my tax return, so I owe the Inland Revenue the tax on the entire amount.
However, since I do some business miles, I can claim 40% tax relief on 40p per mile (up to 10k miles), which I also enter into my tax return. So far it seems to balance out the tax on the fuel card. I realise this is a huge perk.
I claimed for a couple of years when I realised I could do this. No idea how far back I could have gone. This is fuel for a private car, I believe the rules are different for company cars.
Ayatollahofniche - Member
If you don't mind me asking what's are your allowances?
We don't get a monthly allowance, just milage allowance which is 40p for the first 10000 and 25p for the rest tax free. I've just sat down and done my sums and with the current fuel prices etc I'm loosing over £1k per year. I'm having a meeting in 2 weeks when the md gets back. I just want to arm myself with other suggestions as to what other people are getting.
Personally I'd like a monthly allowance, then a lower milage allowance.Thanks in advance.
Posted 8 hours ago # Report-Post
YOU HAVE TOLD YOUR INSURANCE COMPANY YOU USE YOUR CAR FOR WORK RELATED BUISSNESS AND TOLD THEM YOUR ESTIMATED MILES, AND ARE THUS CLASSED AS A BUISSNESS USER, AND SHOULD PAY MORE INSURANCE PREMIUM.
I HAD TO.
I believe the rules are different for company cars.
Indeed they are - I misunderstood your post
I suddenly had thoughts of claiming tax back on 200k miles, but that dream [& the accompanying new bike] has now died 😆
Project, I'm insured for business use, as said in a previous post.
To answer the OP ..............
I get £5300 pa car allowance & can claim 16p per business mile off the company + the tax back from the gov as highlighted elsewhere