m1cassels

Be grateful for anybody's help on this.

I have a MY01 scoob wagon. My employer pays 16p/mile fuel allowance for business miles incurred. ( I opted out of the company car scheme.)

In past years I have claimed the difference between the 16p and the inland revenue rate (currently 40p/mile) on a tax return and you get refunded the tax on the difference. Fairly easy.

BUT - I understand that there is a way to claim based on the running costs of the car including servicing, insurance, tyres etc (and depreciation?), rather than mileage. Anybody know how you do it and if it is accepted by the IR?

Be very grateful for any advice.

Cheers.

Dunk

iTrader: (1)

Take a look at http://www.inlandrevenue.gov.uk/pdfs/ir125.htm
"You must keep details of your actual travel costs during the tax year and a record of all your business and private mileage.

You can then work out the proportion of the costs that relate to your business travel and compare it with the allowances you have received from your employer during the year. If the allowances come to more than your business travel costs, you have received a taxable profit. If they come to less, you can get tax relief on the difference."


D

m1cassels

Thanks Dunk - will have a look now

JayTee

Inland revenue also do a fixed porit scheme where you claim 40p/ mile for first 10,000 miles then 25p/ mile for any further.
Again records must be kept, but I only keep details of toatl for each journey.
If you employers wont pay the full amount you'll have to claim it back like you currently do...

Sennadog 93

m1cassels - did you used to have a fuel card with your company car?

I'm looking into the possibility of going back to the fuel card as there appears to be a more beneficial way of claiming the tax back, whilst getting the beneifit of the fuel card.

Scott W

Sennadog - really? I'd be interested to find out more on this.

m1cassels

No, my company will not issue a fuel card for privately owned cars. But I did have one for my last car a VW Golf. Be careful though, because I got completely shaf##d by the IR because I got it half way through the year (the card already had the car). As soon as you spend £1 on fuel, they treat it as though you have had it all tax year, at a cost of approx £800. Not really worth having unless you are doing fairly serious personal mileage and your company will pay for it.

crowt123

the inland revenue stopped doing the "exact way" last year....another goo earner stopped...all you can do now is claim at the 40p for the first 10k and 25p after..

m1cassels

I have just got to the end of the 17 pages and found that as well. Damn. Not sure if the new IR124 leflet is out yet?

N1 SPAN

Shame they have stopped doing that. I worked out one year that running a golf gti claiming the 40p rule versus depreciation worked out very slightly in the favour of 40p. I would definately say you are better off using depreciation on a new scoob. Unlucky that has gone, I wasn't aware it had done but I am no expert.

crowt123

and it's cost me about £500 this year ! bummer