Claiming tax on mileage

Axeboy · 27 Mar 2012 at 14:26

Guys

Just want to check something.

I get a lump sum split over 12 months to run my car as well as a mileage rate of 27p/mile.

Can I claim the difference? 45p I assume at the moment?

The thing I dont know is if the lump is taken into account in any way or not

kefkef · 27 Mar 2012 at 14:46

The lump sum is a MAP (Mileage allowance payment) and should be included as far as i have always been told.

http://www.hmrc.gov.uk/manuals/eimanual/EIM31360.htm

lee1101 · 27 Mar 2012 at 14:47

Edit ignore - Kefkef is correct there

Windle · 27 Mar 2012 at 15:56

Edit: ignore, confused myself

Haggisman · 27 Mar 2012 at 16:12

Is a MAP the same as a car allowance then?

Participant · 27 Mar 2012 at 16:39

Haggisman said:
Is a MAP the same as a car allowance then?

No, a car allowance is taxable as if it were any other part of your income, MAPs are only taxed on one's P11D if they go over the value of the HMRC-approved payment for the miles you did.

By the way OP, you can only claim the tax on the difference, not the actual difference.

So if you did 12,000 business miles per year and receive £100 per month MAP from your employer, you'd get (10000 * £0.27) + (2000 * £0.25) + (12 * £100)= £4,400. Approved HMRC payment would be (10000 * £0.45) + (2000 * £0.25) = £5,000, so you'd be able to claim 20% of (5000-4400) = £120, assuming you are a basic rate tax payer.

I think.

Imy · 27 Mar 2012 at 16:42

A shame they don't just give you 45p/mile. Tax can be such a headache.

Axeboy · 27 Mar 2012 at 18:27

I get £5600 a year taxed and split over the 12 months...

Does that mean I can claim tax on the difference on the mileage?

crinkleshoes · 27 Mar 2012 at 19:08

Axeboy said:
I get £5600 a year taxed and split over the 12 months...

Does that mean I can claim tax on the difference on the mileage?

Yes

Axeboy · 27 Mar 2012 at 19:09

Ideal, thanks for the info

Participant · 27 Mar 2012 at 19:14

Axeboy said:
I get £5600 a year taxed and split over the 12 months...

Does that mean I can claim tax on the difference on the mileage?

MAPs shouldn't be taxed (unless over the HMRC mileage threshhold)?

If you get £5,600 of MAP payments p.a. then you have to do at least 14,400 business miles to avoid paying tax.

Axeboy · 27 Mar 2012 at 20:36

I'll need to check my contract, but I assume its not a MAP but a car allowance?

Participant · 27 Mar 2012 at 20:58

Sounds like it then. I made the mistake of assuming that kefkef was correct.

Axeboy · 28 Mar 2012 at 13:51

Worked it out today, its about £1800 of a difference over the 13000 miles or so I done this year

Also done one for 10/11 too

My employer used to do it all, but they missed last year and I dont have hope theyll do it for 11/12 either

To confirm the calc:

12415 miles at 27p mile completed in 11/12 = £3352.05

10000 x 45p = 4500
2415 x 25p = 603.75
Total tax free amount = £5103.75

Therefore the releif = £1751.70 for 11/12

Participant · 28 Mar 2012 at 14:46

That's not the relief, that's the amount on which you are entitled to relief, so take 20% of that (assuming you are a basic rate tax payer). Also, I believe you should have received (10000 * 0.27) + (2415 * 0.25) = £3303.75, not £3352.05. Everything over 10k miles is allowable at a maximum of 25p no matter what your employer paid you for the first 10k, I believe.

This means you'd get 20% x £1800 = £360.

Greebo · 28 Mar 2012 at 16:05

Robbie G is correct. ALso, don;t foget you can get an extra 5p per mile if any of those journeys had an employee in the car with you.

Axeboy · 28 Mar 2012 at 17:52

Aye, thanks guys, i know its the tax rate on that

Forms are ready to go, should be worth a fair bit over the two years

Thanks for the help

kefkef · 28 Mar 2012 at 19:23

Worth looking at what you carry also, there's a clause about getting passenger mileage if you carry boxes etc for work too I think. At least I know we can claim for a passenger if we carry a box over a certain weight (or we could a few years ago).