P20SPD

iTrader: (1)

1stly see my occupation in my profile.

Ragnarock - yes you can. eg if you get paid 10p per mile from your employer, you can claim the difference, ie 35p upto 4000 miles for the tax year ended 5th April 2002, and 15p for mileage over 4000.

Approved rates below for tax year to 5th april 2002
upto 1000cc 40p (over 4000 miles 25p)
1001 - 1500cc 40p (over 4000 miles 25p)
1501 - 2000cc 45p (over 4000 miles 25p)
over 2000cc 63p (over 4000 miles 36p)

approved rates below for tax years starting 6th april 2002
Flat rate 40p for 1st 10000 miles and 25p after 10000 miles.

Baby blue is quite right except with the inland revenues version of depreciation, capital allowances, you are restricted to a maximum of £3000 for a year on a car, then less private use.

eg cost of car 20000
writing down allowance at 25% = 5000
restricted to £3000
less private mileage of say 60% = 1800

therefore "depreciation allowed is £1200

hope thats clear.

[Edited by P20SPD - 10/2/2002 10:51:33 AM]

Baby Blue

ragnarock - The basic rate of Income Tax is 22% not 23 m8.

Buzzer - yes you can cailm the tax relief on the difference between 40p and 12p (28p) per mile for up to 10,000 business miles then 13p (25p-12p) for any additional business miles. (2002/03) - (2001/02 4,000 miles @ 45p then 25p)

God .... I sound like a bloody accountant!!!

I will say again, if you would like more detailed help with Income Tax Returns, mail me!

BB

[Edited by Baby Blue - 10/2/2002 2:45:45 PM]

towzer

Have any of you claimed depreciation back from the taxman whilst using your scooby for business purposes? I've got to do my return and am wondering how much people are claiming back from a car the depricites quickly.

Phil

Baby Blue

Phil

Depends whether you are employed or self employed m8.

Assuming y/e 5 April 2002 (running private car for business purposes) you can claim either a mileage rate of 45p per mile for 1st 4000 miles then 25p per mile for all other business miles. These figures have been calculated to theoretically include depreciation and if you do not do a large number of business miles, these are ususally quite generous. From 6 April 2002 the rate are 40p per mile for 1st 10000 miles then 25p per mile. You can also claim some of the finance costs based on % of business miles.

Otherwise, the Inland Revenue will accept actual running costs including depreciation and finance costs. However, they have their own method for claiming depreciation, called Capital Allowances, which is where it becomes a little more complicated. You were allowed to claim 25% of the tax written down value of your car, less the % used for private purposes. For the employed, this method of car allowances has been stopped wef 6 April 2002.

The above assumes that you are an employee, if self-employed, the scope for all expenses is much greater - I know plenty of good (& bad) accountants if you're interested.

I can give you far more info & help if you want it - just email me per profile.

BB

ragnarock

does that mean that if the COmpany you work for pay X amount per mile, you can claim back the difference between that and 45p, or you can claim back the taxable difference (i.e. 23%)?????

Mark Miwurdz

I did this and got £1380 back from the taxman. How? Paid my accountant £115 to do a detailed return. Sorry I can't be more helpful but it is possible. I'm employed, by the way, amd was using my own car on company business.

Cheers
Kav

ragnarock

(Bounce)
Very interested in this one, and would like to here more infomation please

Dunk

iTrader: (1)

I've been claiming this for a few years & use the IR mileage rates rather than the exact method. For me it is more generous & also avoids logging every bill over the past year. Remember that you'll only get the difference between that claimed & the IR rates * your marginal tax rate.
Boxes to use are 1.15 (claimed from employer) & 1.32 (IR rate calculation.)

Dunk (Finance guru to the stars)

Baby Blue

If you would like some help with your return, mail me per profile as I said before.

You should find that a good accountant/tax advisor could save you £s. You may also be able to claim for 2000/01, as you can amend that return anytime before 31 January 2003.

BB

ragnarock

Now I am totally confused (possibly should have been born blonde!!) Dunk, are you saying that if I get payed 25p per mile, I can claim back the whole 20p difference or only 23% of it (being in that tax bracket)? Please help, as this may help buy my STI6 spoiler!!!

Baby Blue

You can claim back the Income Tax on the 20p difference i.e. either 22% or 40% if you are a higher rate tax payer.

As I said, this can also apply to 2000/01 if you did not claim in that year and you make the claim b4 31 January 2003.

BB

Dunk

iTrader: (1)

You'll get (45p - 25p) * tax rate (23% for you ?) = 4.6p refund per mile (for the first 4k miles.) Hope this makes sense !

Buzzer

I have opted out of my company car policy and now take the cash equivelent. I bought a brand new scoob with the monthly allowance i now recieve.

I also get 12p mile nett for all business mileage.

Can i claim for anything??????

Dunk

iTrader: (1)

Buzzer,
From your info it does sound like you can claim a refund. See P20SPD's posting on the IR rates.