How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

My company pays me business mileage (about 6,000 per annum)

Resolved Question:

My company pays me business mileage (about 6,000 per annum) @ 21p per mile and has a dispensation. I have claimed on my tax return (for a number of years) from HMRC the difference between this and the official mileage rate of 45p. Is this correct?
HMRC have sent me a letter which suggests that this is wrong and I cannot claim this because my company has a dispensation. Thank you.
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi. Let me take a look at this and I'll get back to you.
Customer: replied 2 years ago.
Hi.
To save me sitting here waiting, can you tell me when can I expect an answer? thanks
Expert:  TonyTax replied 2 years ago.
In the next 10 minutes.
Expert:  TonyTax replied 2 years ago.
Hi again.
Assuming the claim is for your own car, the fact that there is a dispensation in place is irrelevant in my experience. A simply means that your employer does not have to report the payments to HMRC unless they are asked to on a random selection basis or as part of a PAYE review. That should not preclude you from claiming tax relief where you are not paid the maximum amount tax free.
Take a look here for more information:
http://www.hmrc.gov.uk/manuals/eimanual/eim30058.htm
The amounts you can claim tax relief for are set out here:
http://www.hmrc.gov.uk/manuals/eimanual/eim31240.htm
I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.
thank you for your help.