Originally posted by Craig@Clarity
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Previously on "Dull question from permieland about getting less than 45p a mile...."
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Originally posted by psychocandy View Post
So effective rate is 20pm from employer and then 5pm saved in tax for a total of 25p?
Bit of a difference to 45p
They can get it adjusted on their tax code or as a lump sum repayment depending on timescales and period of claim.
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Originally posted by Craig@Clarity View Post
You're right and not going mad. It's an allowance, so they get tax relief on the difference that their stingy employer won't dish out. Tell them to call HMRC and they should be able to adjust their tax code to include the expense deficit to uplift their personal allowance.
Bit of a difference to 45p
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Originally posted by Craig@Clarity View Post
You're right and not going mad. It's an allowance, so they get tax relief on the difference that their stingy employer won't dish out. Tell them to call HMRC and they should be able to adjust their tax code to include the expense deficit to uplift their personal allowance.
Although I get the impression that its suits them for the employees to believe they're not missing out on 45p at all. Accidentally on purpose.....
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Originally posted by psychocandy View PostCurrent client pays the permies 20p a mile. And has been telling them no worries you can get the additional 25p a mile from HMRC who will make it up to the recommended figure....
Eh? Thats a complete load of tosh isn't it? Yes you can claim back the difference between 45p and whatever you get as an ALLOWANCE against tax. i.e. Basically, thats 25p per mile that you do that you now dont pay tax on - if you're a basic rate taxpayer thats 5p per mile on tax saved.
Deffo not 25p they give back to you. The permies don't believe me. Tell me I'm not going mad and I'm right? And a link?
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Originally posted by psychocandy View PostWhat I mean is employer is paying them 20p a mile. Then they are convinced that HMRC make this up to 25p (and client had told them this).
Its obviously not. Its an allowance - so you save the TAX not the whole amount. i.e. 20% or 40%. They still dont believe me.
Pass the information to someone in the office that's got a modicum of credibility and they will get the message.
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Originally posted by cojak View Post
I have an embarrassing story about quoting that line in the company of a bloke who did indeed have one eye.
And I realised after 'In the...'.
It was like being the driver in a slow motion car crash...
I've never used that saying since.
I feel your pain there.
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Originally posted by caffeine man View PostHMRC mileage allowance is 45p for the first 10k, then it drops to 25p. Depends how many miles the employee does.
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What I mean is employer is paying them 20p a mile. Then they are convinced that HMRC make this up to 25p (and client had told them this).
Its obviously not. Its an allowance - so you save the TAX not the whole amount. i.e. 20% or 40%. They still dont believe me.
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Originally posted by northernladuk View PostIn the land of the blind the one eyed man is king.
And I realised after 'In the...'.
It was like being the driver in a slow motion car crash...
I've never used that saying since.
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HMRC mileage allowance is 45p for the first 10k, then it drops to 25p. Depends how many miles the employee does.
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Dull question from permieland about getting less than 45p a mile....
Current client pays the permies 20p a mile. And has been telling them no worries you can get the additional 25p a mile from HMRC who will make it up to the recommended figure....
Eh? Thats a complete load of tosh isn't it? Yes you can claim back the difference between 45p and whatever you get as an ALLOWANCE against tax. i.e. Basically, thats 25p per mile that you do that you now dont pay tax on - if you're a basic rate taxpayer thats 5p per mile on tax saved.
Deffo not 25p they give back to you. The permies don't believe me. Tell me I'm not going mad and I'm right? And a link?
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