Feek
05-07-2008, 14:50
Following a conversation last weekend about allowable mileage expenses when using ones own vehicle on company business I've been doing some investigating.
In 2002 the rules were changed and the revenue decided that people can be compensated up to 40p/mile for the above for the first 10,000 miles/year.
My company has always paid 35p/mile, we were told this is what the tax man allows and to be fair, it's been paid that figure for at least as long as I've been there which is eight years so I can accept that. I questioned it this week and had it raised to 40p/mile.
I then called my tax office and asked what the score is. It turns out I can claim back up to six years worth. I've just received the appropriate P87 forms dating back to 2002/03.
I've already done the research and over the past five years I've totted up nearly 23,000 business miles in the Feekmobile. I've not got the earlier years figures yet because the company split and I need to talk to the people who have access to the old systems.
Now I'm not quite stupid enough to think that I can actually claim the extra 5p from the tax man although 23,000 x 5p = £1,150 would be very nice!
What actually do I get back? I think it's tax relief on all those extra five pennies, is that right? How's it worked out, how do I get what's owed? Will it be an adjustment of tax code or am I likely to see a cheque? I do have documentary proof of all those miles so it's not just a rough figure.
More importantly, will this put me into the bracket of having to do an annual tax return myself? It's always been dealt with by the company in the past and it's not something I'm that keen on doing.
In 2002 the rules were changed and the revenue decided that people can be compensated up to 40p/mile for the above for the first 10,000 miles/year.
My company has always paid 35p/mile, we were told this is what the tax man allows and to be fair, it's been paid that figure for at least as long as I've been there which is eight years so I can accept that. I questioned it this week and had it raised to 40p/mile.
I then called my tax office and asked what the score is. It turns out I can claim back up to six years worth. I've just received the appropriate P87 forms dating back to 2002/03.
I've already done the research and over the past five years I've totted up nearly 23,000 business miles in the Feekmobile. I've not got the earlier years figures yet because the company split and I need to talk to the people who have access to the old systems.
Now I'm not quite stupid enough to think that I can actually claim the extra 5p from the tax man although 23,000 x 5p = £1,150 would be very nice!
What actually do I get back? I think it's tax relief on all those extra five pennies, is that right? How's it worked out, how do I get what's owed? Will it be an adjustment of tax code or am I likely to see a cheque? I do have documentary proof of all those miles so it's not just a rough figure.
More importantly, will this put me into the bracket of having to do an annual tax return myself? It's always been dealt with by the company in the past and it's not something I'm that keen on doing.