boxst

Please before I go insane help me ...

I am trying to do several years tax returns (not a happy story, don't ask), but I have a question that HMRC can't / don't want to answer.

I do not have a company car (I get an allowance, but that is irrelevant I believe) but I do have a fuel card. ALL fuel (private and business) goes on the fuel card.

On my benefits (P11D) my employer has entered 'Other Items' of £x. Which is the fuel that is put on my fuel card.

Now I do not want this as a full taxable benefit as out of £x, I did drive around for work. Where on earth do I put the amount I want deducted and how do I calculate it?

A BIG thank you to anyone who can help.

Steve

hodgy0_2

ring your tax office Steve

I have always found then to be very helpfull

obviously not going to give you exotic tax avoidance tips -- but will answer your questions

scud8

iTrader: (1)

There are two options - you can either pro-rate the amount paid for fuel to remove the portion used for business miles, or you can claim back the business mileage as a business related expense at the mileage rate allowed by HMRC for that year. The second option is normally more favourable to you as the HMRC mileage rate (see http://www.hmrc.gov.uk/rates/travel.htm) is significantly higher than the cost of fuel (unless you drive a Hummer). Don't be tempted to inflate the business mileage as they could come back to you and ask for proof (although this has never happened to me in ten years of claiming this way).

So for example, if you did 5000 business miles in 2010/11, you can claim a business expense of £2,000 (5000 miles at 40 ppm).

I've been claiming this way for the last several years. If you are still struggling let me know and I'll look at pdf's of the last few years returns and let you know exactly what box to enter the amount.

boxst

Thank you. I wasn't sure if that is the fuel card was paid I could claim the 0.40p/mile as tax relief.

Hodgy: They couldn't help me. They said I couldn't claim anything back, which didn't make any sense to me.

Thanks,

Steve

RA Dunk

What ever you do, don't go to these guys http://www.rangers.co.uk/ for advise!

Chip

Ring your local tax advice centre, they are quite helpful.

boxst

I owe £2800 tax, I almost had a heart attack as I have to pay it immediately apparently.

(my employer had the wrong code based on the new rules)