Originally posted by rawly
The rules are simply ones that affect your tax liability for the amount that they do chose to pay. If they pay you the scale charge, there is no liability for income tax on that payment (provided that the mileage is genuinely claimable).
If they pay you more than this amount (which historically some employers do) or if you have more than one employer and they don't apportion the higher initial rate between them correctly, there is a liability to income tax that should be declared on your tax return.
OTOH if your employer pays you less than the scale charge, you are entitled to claim for the full amount on your tax form and claim a refund directly from HMIT.
tim
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