Vinesh

Last year I done about 3000 business miles, paid 35.6p per mile.

I was speaking to a colleauge and he was saying something about a tax refund for the business miles.

The milage paid is not charged any tax, unless you are a essential car user.

I'm I eligble for some sort of tax return?

douglasb

Yes.

You are allowed 40p per mile for the first 10K business miles. As you get 36.5p, you can claim a tax rebate on 3.5p per mile for 3000 miles. This works out at £105 that you can claim the rebate on. At 22% income tax, you can reclaim £23.10.

You reclaim this by completing a tax return.

Doug

Vinesh

Cheers mate.

pbee

If you are a higher rate tax payer can you claim 40% ??.

Dunk

iTrader: (1)

Yep.

D

SD

It's not quite as simple as that - You need to provide a breakdown of your expenses to run your car for those miles and prove that the cost is more than the amount you are receiving from the company. You can then claim back the difference on this amount at your tax rate.

The 40p a mile thing is just the threshold that the company is allowed to pay you for using your personal car for business use, before it is classed as a taxable benefit.

Simon

Drunken Bungle Whore

Hmm - I never had to do that SD and I got a nice little tax rebate back. When you get the tax return you can opt to do the tricky calculation bit or not. I chose not to and still got money back.

Nice when you get an evenvlope from the tax office with a cheque in it - made my day!

Dunk

iTrader: (1)

SD - you're wrong !!!

You don't need receipts for this method, but you should have a detailed log of your business miles. The rates used are two tier (under & over 10k miles pa)& take no consideration of actual running costs.

D

Diablo

Yup, you can claim back the difference between what the revenue allows as the maximum per mile that is not taxable and the amount per mile you are reimbursed.

BUT - this only works with your own car.

You can also, if you wish, claim back on a pro rata basis the running costs (and for that you need to keep all receipts, etc)

D

douglasb

Diablo - I think that last tax year (2002/03) they did away with the "actual costs" option and that you can only use the 40p/10K, 25p therafter, option.

I had no problem getting the rebate without sending the Revenue a detailed mileage breakdown, however I do have all the records should they query the claim.

Doug

Scott W

So what can you do if you use your own car, but get a fuel card whereby all the fuel is paid for? I've travelled around 20k's worth of business mileage for the last tax year, and need to know the best way (if at all) I can get money back from the Inland Revenue.

Dunk

iTrader: (1)

Scott,
1) The actual total cost of fuel drawn will be classed as a benefit in kind & taxed at your marginal rate.

2) You then claim relief for the business miles travelled. In your case ((first 10k miles @ 40p)+ subsequent miles (?10k miles @ 25p)) * your marginal rate.

Result of 2 less result of 1 should equal your refund.

(See http://www.inlandrevenue.gov.uk/pdfs/ir124.htm#4 for detailed info.)


D





[Edited by Dunk - 7/31/2003 12:48:28 PM]

dasher

Also it now appears, according to IR124 'Using your own vehicle for work' that we have to pay National Insurance on our business mileage. I'm pretty sure we didn't before.

I used to use the detailed calcs method to prove i didn't make profit, and are therefore miffed off you can't do it anymore from 2002/03.

Regards

Daz

Scott W

Cheers Dunk.

Gordo

you only have to pay tax and NI on business miles if your company has exceeded the allowed levels.

i.e. your own car and your company pays you x pence per mile which has, over the year, exceeded 10,000 miles x 40p and mileage above this x 25p

if it's a company car or you have a fuel card that your company pays for, you'll be taxed separately and these rules do not apply

Gordo