Tax Rebate and Allowance Query

[jumper999]

I was wandering if we had any tax experts on here to help me with a few questions regarding my tax and mileage.

I am working as a Care Worker and get paid 23p per mile per job. If I go straight on from one job to another job I get 40p a mile.

In total I spend approx £200 a month on fuel, then at the end of the month I get taxed on the hours I do and the mileage as it is altogether. I get taxed on the £200 I pay for fuel....which I am not sure is right, if so no worries, but would like someone to see if they could help work this out....

Reason I am asking is that I have been reading on HMRC website something called Mileage Allowance Relief (MAR),

Also received my P60 and think I am due a small refund....and would like any input if I am entitled to claim any expenses on my mileage, as I think I should be getting 40p per every mile and job I do...unless I have read the info wrong?

[ostell]

Re: Tax Rebate and Allowance Query

The 40p per mile is the figure that HMRC believe that you are not making a profit so anything you claim from your employer should not be taxable. Why the different rates (23 & 40)?
Do your employers pay for the fuel? If they do then it is wrong from a tax point of view to claim for fuel and the mileage allowance. Is it you own car?

Are you employed or self employed?

[jumper999]

Re: Tax Rebate and Allowance Query

Hi ostell and thanks for your reply....I am employed and pay my own fuel....and get 23p from home to first job and back home....and 40p if I go from one job to another.

I believe hmrc pay 45p per mile now...since 2011

[jumper999]

Re: Tax Rebate and Allowance Query

Last wages I got 174.00 expenses....that was added to my wages...hours I did...and taxed on the whole amount. Just wanted to know if that is how it should be....if yes...no worries....just seem to be spending alot on diesal each month....lol.

[enaid]

Re: Tax Rebate and Allowance Query

Gives details on there and how to work out if you are eligable


http://www.hmrc.gov.uk/incometax/relief-mileage.htm#1

[ostell]

Re: Tax Rebate and Allowance Query

So your mileage expenses appear on your pay slip but that does not mean they are being taxed. Ask you payroll department to check.

You can claim more tax relief by keeping records of the mileage you claim and claiming for the difference between what you get and the 45p rate. The link provided by enaid explains it all.

(It was 40p when I last had to claim!!)

[jumper999]

Re: Tax Rebate and Allowance Query

Thanks ostell......yes my expenses do appear on my pay slip and I am getting taxed for that.

Easy solution. I just called HMRC and they are dealing with this and are going to call me back soon with what I asked.

[ploddertom]

Re: Tax Rebate and Allowance Query

What's your Tax Code -usual current code is 944L. Could be they have given you BR.

[ostell]

Re: Tax Rebate and Allowance Query

You should not be getting taxed on the expenses. Ask your payroll department why/if they are taxing expenses.

If they have been taxing your expenses then you should be due a considerable rebate!!

Here's a tax calculator. Use it and select week 1 basis and see if it agrees with what you are being taxed, with and without expenses.

[jumper999]

Re: Tax Rebate and Allowance Query

Thanks ostell....my tax code on my P60 reads...Final Tax Code 810LM1...

I also checked my wage slip and calculated myself...and I am not getting taxed for expenses.....been so busy on my other case that my mind went all fuzzy trying to work things out.

I started work in October 2012....and wandering if the 810LM1 tax code is correct?

Thanks for your input.

[TUTTSI]

Re: Tax Rebate and Allowance Query

It could be that your code number has been reduced because of them not collecting the right amount of tax in previous years or that other income non taxed has altered your code number and or your employer is operating the wrong code. The tax office will let you know how your tax code has been calculated and if there is anything wrong this will be rectified.