Fixed Profit Car Scheme - Maybe one for Eric
Discussion
Ok next month I am opting out of the company car.
I am being paid every 4 weeks a car allowance of £250 and in addition to this I will be paid 11p a mile.
I was told yesterday by a colleague that she claims the difference between the 11p paid and what HMRC allows. She said she does it via self assessment.
I will be doing between 15k and 18k miles a year if that helps.
Can anyone (probably eric mc) tell me if this is correct.
Or alternatively tell me more about the scheme and the situation re tax.
I am being paid every 4 weeks a car allowance of £250 and in addition to this I will be paid 11p a mile.
I was told yesterday by a colleague that she claims the difference between the 11p paid and what HMRC allows. She said she does it via self assessment.
I will be doing between 15k and 18k miles a year if that helps.
Can anyone (probably eric mc) tell me if this is correct.
Or alternatively tell me more about the scheme and the situation re tax.
Edited by CatherineJ on Wednesday 26th August 18:39
There was a thread on this not too long ago, try the search function. I do believe what you are saying is correct unless I read it wrong.
I am lead to believe (through the mighty PH knowlege) that you can claim up to the (i think its...) 40p per mile from the deficite the company gives you, im your case 11p. therefore you can claim back 29p per mile from the Government. (someone will be along soon to correct me though no doubt)
I am lead to believe (through the mighty PH knowlege) that you can claim up to the (i think its...) 40p per mile from the deficite the company gives you, im your case 11p. therefore you can claim back 29p per mile from the Government. (someone will be along soon to correct me though no doubt)
Yes i've done a search and one of the threads was mine when I was choosing the car.
I was never great at accounts when at uni, but this is what i've calculated using my gcse maths.
HMRC ALLOWANCE ASSUMING 16,000 M.P.YEAR
10,000 @ 0.40p = £4,000
6,000 @ 0.25p = £1,500
Total allowed = £5,500
ACTUAL PAID BY EMPLOYER ASSUMING 16,000 M.P.YEAR
Car Allowance £3,250
Petrol Allowance £1,760
Total paid = £5,010
Claim back £490.00?????
This would fit with the £500 my colleague said she claimed back.
I was never great at accounts when at uni, but this is what i've calculated using my gcse maths.
HMRC ALLOWANCE ASSUMING 16,000 M.P.YEAR
10,000 @ 0.40p = £4,000
6,000 @ 0.25p = £1,500
Total allowed = £5,500
ACTUAL PAID BY EMPLOYER ASSUMING 16,000 M.P.YEAR
Car Allowance £3,250
Petrol Allowance £1,760
Total paid = £5,010
Claim back £490.00?????
This would fit with the £500 my colleague said she claimed back.
Edited by CatherineJ on Wednesday 26th August 19:04
CatherineJ said:
Yes i've done a search and one of the threads was mine when I was choosing the car.
I was never great at accounts when at uni, but this is what i've calculated using my gcse maths.
HMRC ALLOWANCE ASSUMING 16,000 M.P.YEAR
10,000 @ 0.40p = £4,000
6,000 @ 0.25p = £1,500
Total allowed = £5,500
ACTUAL PAID BY EMPLOYER ASSUMING 16,000 M.P.YEAR
Car Allowance £3,250
Petrol Allowance £1,760
Total paid = £5,010
Claim back £490.00?????
This would fit with the £500 my colleague said she claimed back.
Not quite, the £250 per month is technically just extra salary and will be taxed in the normal way.I was never great at accounts when at uni, but this is what i've calculated using my gcse maths.
HMRC ALLOWANCE ASSUMING 16,000 M.P.YEAR
10,000 @ 0.40p = £4,000
6,000 @ 0.25p = £1,500
Total allowed = £5,500
ACTUAL PAID BY EMPLOYER ASSUMING 16,000 M.P.YEAR
Car Allowance £3,250
Petrol Allowance £1,760
Total paid = £5,010
Claim back £490.00?????
This would fit with the £500 my colleague said she claimed back.
Edited by CatherineJ on Wednesday 26th August 19:04
Your mileage allowance is:
10,000 miles @ 40p = 4,000
6,000 miles @ 25p = 1,500
5,500
employer paid:
16,000 @ 11p 1,760
Difference 3,740
So you can claim tax relief on this 3740 which will either be £748 or £1496 depending if you're a higher rate tax payer or not.
hhhmmm smartie not sure on that bit.
I've got to hope that HMRC change my tax code sooner rather than later to remove current company car from my personal allowance. Or I could end up for 5 months paying tax on the £250 if your correct, and the company car allowance.
I've got to hope that HMRC change my tax code sooner rather than later to remove current company car from my personal allowance. Or I could end up for 5 months paying tax on the £250 if your correct, and the company car allowance.
Edited by CatherineJ on Wednesday 26th August 19:25
Edited by CatherineJ on Wednesday 26th August 19:52
Normally the car allowance is just added onto your salary so will be taxed in line with whatever your current rate is. When I was 'opted out' I claimed my business mileage back each month from my Employer then each year claimed the difference in the example as above. I take it you will be putting your 'own' fuel in then claiming back?
Submitting the receipts is probably more to do with the company claiming the VAT back on the fuel purchase.
I receive a cash allowance as salary which is just extra salary and therefore taxed........I also get 10ppm and claim back to the excess 30p (15p over 10K miles) via my self assessment every year.
I receive a cash allowance as salary which is just extra salary and therefore taxed........I also get 10ppm and claim back to the excess 30p (15p over 10K miles) via my self assessment every year.
uuf361 said:
Submitting the receipts is probably more to do with the company claiming the VAT back on the fuel purchase.
I receive a cash allowance as salary which is just extra salary and therefore taxed........I also get 10ppm and claim back to the excess 30p (15p over 10K miles) via my self assessment every year.
Sounds sensible.I receive a cash allowance as salary which is just extra salary and therefore taxed........I also get 10ppm and claim back to the excess 30p (15p over 10K miles) via my self assessment every year.
Hi All,
Ok well I spoke to our payroll manager today.
Until September 12th I have a company car and have been advised to write to the nice people at the Revenue to advise them that I won't have the company car any more.
Then from 14th September I will receive car allowance instead.
She has confirmed they DO NOT Tax the £250.00
The payment for a petrol car per mile is currently 12.1p not 11p as per my original understanding.
They then submit at the end of the year to the Inland Revenue how much they have paid me in total, which will be of course for a part year.
I make the total for the year.
13 Payments of £250 = £3,250
Fuel @ 12.1p Mile = £1,936
Total Paid £5,186
The Inland Revenue allow as per my previous post:
10,000 miles @ 40p/mile = £4,000
6,000 miles @ 0.25p/mile = £1,500
Total Allowed £5,500
Difference £314.00 (in my favour).
So with the above facts clarified are my calculations correct? Does the £314 or whatever the pro rate figure is get dealt with via the personal allowance?
Ok well I spoke to our payroll manager today.
Until September 12th I have a company car and have been advised to write to the nice people at the Revenue to advise them that I won't have the company car any more.
Then from 14th September I will receive car allowance instead.
She has confirmed they DO NOT Tax the £250.00
The payment for a petrol car per mile is currently 12.1p not 11p as per my original understanding.
They then submit at the end of the year to the Inland Revenue how much they have paid me in total, which will be of course for a part year.
I make the total for the year.
13 Payments of £250 = £3,250
Fuel @ 12.1p Mile = £1,936
Total Paid £5,186
The Inland Revenue allow as per my previous post:
10,000 miles @ 40p/mile = £4,000
6,000 miles @ 0.25p/mile = £1,500
Total Allowed £5,500
Difference £314.00 (in my favour).
So with the above facts clarified are my calculations correct? Does the £314 or whatever the pro rate figure is get dealt with via the personal allowance?
Hi All,
Ok well I spoke to our payroll manager today.
Until September 12th I have a company car and have been advised to write to the nice people at the Revenue to advise them that I won't have the company car any more.
Then from 14th September I will receive car allowance instead.
She has confirmed they DO NOT Tax the £250.00
The payment for a petrol car per mile is currently 12.1p not 11p as per my original understanding.
They then submit at the end of the year to the Inland Revenue how much they have paid me in total, which will be of course for a part year.
I make the total for the year.
13 Payments of £250 = £3,250
Fuel @ 12.1p Mile = £1,936
Total Paid £5,186
The Inland Revenue allow as per my previous post:
10,000 miles @ 40p/mile = £4,000
6,000 miles @ 0.25p/mile = £1,500
Total Allowed £5,500
Difference £314.00 (in my favour).
So with the above facts clarified are my calculations correct? Does the £314 or whatever the pro rate figure is get dealt with via the personal allowance?
Ok well I spoke to our payroll manager today.
Until September 12th I have a company car and have been advised to write to the nice people at the Revenue to advise them that I won't have the company car any more.
Then from 14th September I will receive car allowance instead.
She has confirmed they DO NOT Tax the £250.00
The payment for a petrol car per mile is currently 12.1p not 11p as per my original understanding.
They then submit at the end of the year to the Inland Revenue how much they have paid me in total, which will be of course for a part year.
I make the total for the year.
13 Payments of £250 = £3,250
Fuel @ 12.1p Mile = £1,936
Total Paid £5,186
The Inland Revenue allow as per my previous post:
10,000 miles @ 40p/mile = £4,000
6,000 miles @ 0.25p/mile = £1,500
Total Allowed £5,500
Difference £314.00 (in my favour).
So with the above facts clarified are my calculations correct? Does the £314 or whatever the pro rate figure is get dealt with via the personal allowance?
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