|
Title: Business Mileage - Tax Relief Post by: Bewster on Tuesday, June 3, 2014, 14:30:44 I know there are some fellow bean counters on here so rather than trawl through the shite of the HMRC website I'd thought I put this to the floor as personal tax is not my strong point.
My parent company reduced the mileage rates for those employees that get a car allowance to be aligned with the HMRC recommendations, so from 45p to 18p for example and instructed us to reclaim tax on a P87 form. It turns out that this is just the tax on the difference between 45p and 18p, so 20% * 27p * annual mileage for basic raters. However, my MD is convinced he is allowed to reclaim the full difference of the 27p per mile from the HMRC. However I cannot find this anywhere - all I can find is this - http://www.hmrc.gov.uk/incometax/relief-mileage.htm Would this mileage claim be included in a personal tax comp ? Any offerings/help from the fellow TEFers ?? Title: Re: Business Mileage - Tax Relief Post by: Simon Pieman on Tuesday, June 3, 2014, 15:00:47 You get relief on the difference and this is done through amending your PAYE code which is what HMRC will do.
i.e. The MD is wrong. You can either claim through form P87 or a personal tax return if you do one. http://www.hmrc.gov.uk/incometax/how-to-get.htm Title: Re: Business Mileage - Tax Relief Post by: 4D on Tuesday, June 3, 2014, 15:33:40 Si is right.
Title: Re: Business Mileage - Tax Relief Post by: Bewster on Tuesday, June 3, 2014, 21:32:55 Cheers
|