FAO Rotty / Private car drivers (Tax Relief question)

JamesRJ · 8 Feb 2006 at 23:24

Or this if company car http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

Rotty · 9 Feb 2006 at 00:42

Right , sounds like your situation is the same as mine , I get a monthly allowance which is taxable

I then get 14p per mile for fuel

I can then claim tax relief ( AMAP ) on the difference between the 14p and the government guidelines which are 40p for first 10k miles and 25p after that

so I get tax relief ( at my highest tax rate ) on 26p ( 40 -14p ) for the first 10k miles and the 11p ( 25-14p ) on the rest

you normally claim this annually on your tax return , you just fill the amount of miles done in and the amount claimed and they pay you the money , after a while you can also usually get them to give you an allowance on your tax code as a credit against mileage and then make any adjustments at the end of the year

My company actually pay me my AMAP credits monthly in my salary and then claim it back on my behalf though this is unusual

don't forget to keep records of mileage done as they may ( but not very often ) ask for them

email is g.colclough@[remove]ntlworld.com

Rotty · 9 Feb 2006 at 00:43

BTW Merlin , you should be able to claim this too

Jez · 9 Feb 2006 at 01:42

Thanks for that rotty

Can you run quickly through an example of what i would get back in this situation.

Milage 20,000 per year. Company payout 12ppm. As far as i can tell i would get 28ppm for the first 10,000 miles, and 13ppm after that. Thus making a total claim of £4100? Or have i missed something with how this works.

Rotty · 9 Feb 2006 at 01:58

you don't claim £4100 you claim tax relief on £4100

if your highest rate of tax is 22% then you get 22% of £4100 = £902

if your highest rate of tax is 40% then you get 40% of £4100 = £1640

Jez · 9 Feb 2006 at 11:48

Right, i see, doh!

Rotty · 9 Feb 2006 at 12:18

Is it worthwhile for you then ?

Jez · 9 Feb 2006 at 12:24

I am really not sure, that £900 would pay for insurance but that would be about it, its not the huge load of cash that i thought it would be which would have offset the running costs of a better car than the leon.

Unless i was given a car and had no monthly costs associated then i dont think i could afford to replace the leon, not when i take into account that i use a hell of a lot of private fuel on the fuel card which i would suddenly have to pay for