steve McCulloch

Erm

I think you'll find it varies by employer!

Depends if its just for the car or a 'fully expensed amount'

I'd expect a minimum of £750 pm to replace my car, with most employers I've seen offering rates of about £550-£600, with a 12p a mile allowance

KenG

My company provide a good monthly allowance (subject to PAYE), petrol card with the employee being taxed on the private petrol.

Have a look on http://www.inlandrevenue.gov.uk/home.htm and download the info on using your own car for work. You will find there are two ways of claiming the allowances for tax - pence per mile or true costs. Work out which is the best for you and stick with it.

A lot of companies are getting out of the provision of company cars which must be worrying the fleet suppliers.

Ken

Dracoro

BTW (in case it is relevant), I think this is a perk as opposed to not having a company car. i.e. I probably don't need the car for work purposes (except for commuting).

Dracoro

bttt

Scumbag

Ken,

The exact method of calculation is being removed from 5th April (obviously a lot more labour intensive to administer). I think I'll be selling mine and buying it straight back to get over the max £3000 depreciation carry over (It's a long story!!!)

I thought that a company petrol card when using a private car accumulates tax on the ENTIRE amount spent on the card...not just that for private mileage (or it is according to the sister-in-law who is a chartered accountant currently specialising in individual/small company tax...but I'd just love to prove her wrong )

SB

[Edited by Scumbag - 3/13/2002 9:41:27 PM]

chiark

750PCM? I wish I worked for that company . I think ours is about 350 quid a month

It was either a 1.6 vectra or the money. Hmm.

Neil Smalley

Scumbag,

The exact method IS still allowed after FY01. But you won't be able to claim back depreciation on your car. I.e The capital allowance. I guess this is because used cars took such a hit in the last year or so everyone was claiming the full 3 grand.

You can still claim for servicing, repairs and consumables though.

steve McCulloch

Chiark

Thats what I'd need to break even - I have a fully expensed Audi S3 (crap handling but it'll do)

If I had not gone for the fully expensed option I'd have got £583 a month (£7k pa)

Tax is 15%*about £24k
and the tax on the petrol benefit - about £2500?
all at 40% tax - not much, so I can live with it

£350 must be just a car benefit - pretty crap

Oh and I'll be claiming for the use of Scooby as well, as I wrote off the last company Audi

I'll be claiming several grand, as a tax deductible expense (shame about the 3k limit on the car deprecation allowance - oh, and of course, I dont drive my car on personal use!!)

DJ Dunk

iTrader: (5)

Our company gives a cash payment of about £400-£700 pcm plus £2500 per annum for fuel split over 12 months. Then you can claim business mileage back at a rate of about 25p per mile.

I believe you can then reclaim the tax on the mileage up to the Inland Revenues rate (about 45p).

Mind you, this is not an expensed car and everything has to be paid for by the owner. Road Tax, Insurance, Servicing etc all has to be taken into account.

Scumbag

Neil,

Thanks...thats interesting,

Unfortunately I only bought the car 6 months ago, so I can only claim max £1500 depreciation. I think I will sell it to a friendly dealer on 5th April + buy it straight back for £500 more. This should make me a few pennies (I reckon as the year of sale does not have a limit applied)

Next year I'll take a fuel card, and use the standard mileage rates.

Cheers

SB

Scumbag

Ooops,
just been onto the revenue site, and I can claim this without having to sell the car as this is the last year + we cant have any carry forward.....

However, I also found the following quote :
Will there be any changes from 6 April 2002?

You will not be able to use the exact method of calculating whether you have a taxable profit on your allowances or can claim tax relief. Instead, there will be new statutory rates of approved mileage allowance. See page 28 for more details of the changes from 6 April 2002.

from the IR website:
http://www.inlandrevenue.gov.uk/pdfs/ir125.htm#trans

Cheers

SB

[Edited by Scumbag - 3/14/2002 12:14:25 PM]

Neil Smalley

In that case I take it back... Damn
Good job i've got lots of bills to put in for this year...

However I don't get an allowance. The money is taxed as salary, therefore is'nt an allowance per se. Hmmm guess I'll have to worry about that FY03.

[Edited by Neil Smalley - 3/14/2002 4:19:08 PM]

dba

I'm pretty sure that whatever allowance your company gives for business miles (mine give 11p per mile) you can claim the difference back as tax-including pro-rata running costs and depreciation against those miles.

I haven't had to do a return yet as Ive only just opted out,so imay be wrong

SD

Dave (dba) you can claim back the tax back on the difference (so not actually the difference itself).

Is that what you said?

Done this a couple of times meself if that's any help...

Scumbag

yup, you can claim back the difference

note that the mileage rates are pretty different for next tax year...assuming a 2litre scooby, we can claim difference between what the company pays per mile (12p in my case) and the allowed limits which are:
40p for the first 10,000 miles (not 4000 as previously) and 25p for each mile thereafter

SD...when you put your tax return in, how much info did you have to give to prove what business mileage you did?...was it enough to say 23 journeys from x to y each of z miles, or did you give mileometer readings for each journey (as our finance department thinks I will have to give) ?

Cheers

SB

Dunk

iTrader: (1)

Been getting a refund from the IR for a couple of years now, the only info supplied on my tax return is : is miles travelled, amount reimbursed & amount claimed.
Do consider that you won't get the difference between the two, but the difference * your marginal tax rate (your top rate of tax paid.) Hope this assists.

Scumbag

Cheers Dunk....

Our company is just trying to give us a different slant on what they think is "business mileage". It looks like this differs from the Inland Revenue's definition, so we're going to have to keep different sets of records (one for claiming our business mileage allowance from the company, and one for claiming the rebate from IR). I just wanted to get my figures straight before I have a major showdown with Accounts /Inhuman Resources

SB

SD

SB:

What Dunk said basically.

HTH

Simon

Dunk

iTrader: (1)

Link below is the relevant page in the 2000/02 Tax return, Box 1.15 for the amount reimbursed to you by your employer & box 1.32 for the amount you are claiming as incurred as business related expenditure. I've never been asked for detailed info


http://www.inlandrevenue.gov.uk/pdfs...ment/SA101.pdf

Bon Chance

[Edited by Dunk - 3/18/2002 12:31:03 PM]

Scumbag

Cheers Dunk.....

Unfortunately I probably stand out a bit.... 25k business miles and err about 2k private. (hence why the "exact" method was good for me
I've got most/all of the paperwork to justify this, I think I might send details of it off with my return this year to try and prove it's legitimate, without having to send all the receipts

SB

Dracoro

Does anyone (I'm sure they do) know how this 'Car Allowance' benefit that employers give works? Job I am applying for (got to the last stage!!) mentioned car allowance and would like to know more about it.
thx in advance.

[Edited by Dracoro - 3/12/2002 11:13:38 PM]