Posted: Wed Sep 07, 2005 1:26 pm
I've just found this excellent forum but despite searching through the archives I haven't found anybody asking this question in quite the way it affects me.
I've just started a new job and I'm fortunate enough to receive a car allowance in lieu of a company car (there was no option, it's just company policy).
My contract states that my mileage expenses will be reimbursed at current Inland Revenue rates.
My first expenses claim has just been submitted. I'm claiming approx 600 business miles a week at 40ppm. (I'm keeping careful track of mileage as I know the rate changes over 10000 miles to 25ppm).
The claim has been rebuffed by my employer as they claim that since I'm in receipt of a car allowance the applicable mileage rate is 12ppm. At today's prices this doesn't even cover my fuel.
From all the research I've done I believe I'm right with respect to the allowed rates by the Inland revenue. The car is my own, I've had it for years so I believe that despite the car allowance (taxed as salary) I'm entitled to claim rates for a private car for business use.
This all brings me to my questions:
Accepting that my company may change the wording of their policy so that they pay 12ppm instead of current allowable rates, can I can claim back the difference on my tax return? If so how do I do this, will I receive all of the difference (likely to be over £4000 per year) and just as importantly when am I likely to see the cash?
I'd really appreciate any help I receive here, Thank you in advance
Dave
I've just started a new job and I'm fortunate enough to receive a car allowance in lieu of a company car (there was no option, it's just company policy).
My contract states that my mileage expenses will be reimbursed at current Inland Revenue rates.
My first expenses claim has just been submitted. I'm claiming approx 600 business miles a week at 40ppm. (I'm keeping careful track of mileage as I know the rate changes over 10000 miles to 25ppm).
The claim has been rebuffed by my employer as they claim that since I'm in receipt of a car allowance the applicable mileage rate is 12ppm. At today's prices this doesn't even cover my fuel.
From all the research I've done I believe I'm right with respect to the allowed rates by the Inland revenue. The car is my own, I've had it for years so I believe that despite the car allowance (taxed as salary) I'm entitled to claim rates for a private car for business use.
This all brings me to my questions:
Accepting that my company may change the wording of their policy so that they pay 12ppm instead of current allowable rates, can I can claim back the difference on my tax return? If so how do I do this, will I receive all of the difference (likely to be over £4000 per year) and just as importantly when am I likely to see the cash?
I'd really appreciate any help I receive here, Thank you in advance
Dave