Mileage Allowance

[johnnywb]

All,

I understand that there used to be a way of reclimaing money from tax if you used a personal car for business, received a car allowance, but didn't claim 40p a mile?

My understanding was that if, for example, you could claim 21p a mile, you could claim the remainder up to 40p (so 19p per mile) as a tax deduction?

Am i right? And more importantly, is this still the case?

Thanks

[shakotan]

johnnywb said:

All,

I understand that there used to be a way of reclimaing money from tax if you used a personal car for business, received a car allowance, but didn't claim 40p a mile?

My understanding was that if, for example, you could claim 21p a mile, you could claim the remainder up to 40p (so 19p per mile) as a tax deduction?

Am i right? And more importantly, is this still the case?

Thanks

You are correct, and it is still applicable.

[anonymous-user]

Get the revenue booklet (FOC) is was called Using your car for your empolyers business. (or somthing very close to that title).

[Nano2nd]

shakotan said:

johnnywb said:

All,

I understand that there used to be a way of reclimaing money from tax if you used a personal car for business, received a car allowance, but didn't claim 40p a mile?

My understanding was that if, for example, you could claim 21p a mile, you could claim the remainder up to 40p (so 19p per mile) as a tax deduction?

Am i right? And more importantly, is this still the case?

Thanks

You are correct, and it is still applicable.

not quite, you can only claim tax relief on the 19p, so depending on your tax rate either 20 or 40% of 19p and yes it does suck!

[scirocco265]

40p a mile for private mileage only applies to the first 10,000 miles though, after that it's 25p a mile. Quite a few people who opted out of Company Car schemes got stung by that.