Dull question from permieland about getting less than 45p a mile....

[psychocandy]

20% of 25p if they're a BR tax payer and 40% if they're a HR taxpayer (but you know this).

They can get it adjusted on their tax code or as a lump sum repayment depending on timescales and period of claim.

Yep. Exactly as I thought..... Thanks for confirming........

[Craig@Clarity]

So effective rate is 20pm from employer and then 5pm saved in tax for a total of 25p?

Bit of a difference to 45p

20% of 25p if they're a BR tax payer and 40% if they're a HR taxpayer (but you know this).

They can get it adjusted on their tax code or as a lump sum repayment depending on timescales and period of claim.

[psychocandy]

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.

So effective rate is 20pm from employer and then 5pm saved in tax for a total of 25p?

Bit of a difference to 45p

[psychocandy]

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.

Thanks Craig. Client is STILL saying HMRC pay you 25pm a mile back in tax....Completely nuts that there is no-one in a big company that understands this......

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.....

[Craig@Clarity]

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?

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.

[northernladuk]

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.

This might be something to do with respect. We wouldn't believe you if you gave us advice either. Maybe they are a little smarter than you give them credit for. The boy that cried wolf and all that.

Pass the information to someone in the office that's got a modicum of credibility and they will get the message.

[northernladuk]

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.

Made my toes curl reading that. When I was an apprentice I told a disabled joke to one of the engineers at a foundry I was working at and he just looked at me and in a really deadpan voice he told me he had a disabled son. I was only 17 and I remember how I feel to this day.

I feel your pain there.

[psychocandy]

HMRC mileage allowance is 45p for the first 10k, then it drops to 25p. Depends how many miles the employee does.

yes this is the max an employer can pay. They can pay the employee 10p a mile if they like.

[psychocandy]

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.

[cojak]

In the land of the blind the one eyed man is king.

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.

[caffeine man]

HMRC mileage allowance is 45p for the first 10k, then it drops to 25p. Depends how many miles the employee does.

[northernladuk]

In the land of the blind the one eyed man is king.

[cojak]

Yep, that’s what I used to do BITD.

[EvilGazebo]

100%

As per here:

https://www.gov.uk/tax-relief-for-em...u-use-for-work

[psychocandy]

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?