Milage expenses

[ITD2]

Can some one answer this for me please.

If by law you are entitled to 40p per mile for the use of your own car, why do some firms only give you say 22p/30p per mile etc? do the keep the extra for themsevles?

[Hiram King Of Tyre]

Those figures are HMRC approved rates. What a company pays is down to their own policy. If they pay more it's taxable, if they pay less, you can claim tax relief on the difference

[Nixon Williams]

As already said, it is upto the employer to decide what they pay in mileage.

It is worth remembering that the "clock" resets if you change employment during the tax year, so you can have another 10,000 at 40P if applicable.

If you trade through a company and a client pays you say 20p per mile, you can still claim at 40p/25p from your own company.

If you are an employee you can claim the difference on your tax return (box 1.32)

Hope this helps

Alan

[Hiram King Of Tyre]

That's useful to know Alan. I thought that it only re-set at the beginning of a new tax year.

What happens then if you also use your car to generate an income outside your job? Can you offset 40p per mile against tax even if you have already clocked up 4000 miles for your employer?

[Nixon Williams]

That's useful to know Alan. I thought that it only re-set at the beginning of a new tax year.

What happens then if you also use your car to generate an income outside your job? Can you offset 40p per mile against tax even if you have already clocked up 4000 miles for your employer?

If it is a separate employment then yes, however it is not clear you mean that. If it is self employment then you would claim travel costs, which maybe at 40p or less, or more!

Alan

[Hiram King Of Tyre]

I mean specifically doing something different at the weekend which I consider a hobby and am therefore happy for it to cost me money. However, because I'm paid something for doing it, I have to declare it to HMRC and show that I'm making a loss......

[xoggoth]

Hey that's an idea! I research vodka at the pub, I have very high expenses and they pay me sweet FA, mean bastards! Can I claim it back?

[Sausage Surprise]

As already said, it is upto the employer to decide what they pay in mileage.

It is worth remembering that the "clock" resets if you change employment during the tax year, so you can have another 10,000 at 40P if applicable.

If you trade through a company and a client pays you say 20p per mile, you can still claim at 40p/25p from your own company.

If you are an employee you can claim the difference on your tax return (box 1.32)

Hope this helps

Alan

Bliddy hell! I changed contracts in August and have only been claiming the 25p instead of 40p. Come on Alan.....how come you never spotted it on my expenses sheet

Will you accept a back dated one at the end of this month?

Hang on, I never claimed the business miles from my old job through the company either!

[Hiram King Of Tyre]

But you haven't changed employment......

[Royston Vasey]

If he went to a different company, it would be though surely?