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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am employed full time and get a car allowance, i also get

Resolved Question:

I am employed full time and get a car allowance, i also get reimbursed for business expenses and business miles traveled at 0.30 pence per mile. What information do i need to disclose in my tax return?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. The car allowance should be shown in your payslips and taxed accordingly so there is no need for a seaprate entry in the return as it is inlcuded in the gross pay figure as shown on your P60 which goes into box 1 of the SA102 employment pages. As for the business mileage allowance, see the notes at 2 here. Work out the allowance that you are entitled to tax relief on and deduct the payment you have received from your employer. Put the resulting figure in box 17 of the SA102 employment pages. I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
I understand that the car allowance in not included in my gross pay. My Annual gross pay is 420000.00 and car allowance is 5000. but my P60 shows the 42000 as the gross taxable pay. On top on the car allowance I also claim business mileage at 0.30p a mile. I have done less than 10000 miles in 2014/2015 so can I claim taxon the short fall?
Customer: replied 1 year ago.
sorry that should read 42000
Expert:  TonyTax replied 1 year ago.
Your employer is doing it incorrectly if they have not included the £5000 car allowance as taxable salary in their RTI PAYE reporting. Make sure it hasn't been taxed or shown in a P11D and if it hasn't, put it in box 3 of the SA102 employment pages.
You can claim tax relief on the shortfall which is 15p per business mile in your case as you did less than 10,000 business miles.
Customer: replied 1 year ago.
The car allowance is shown on the P11d.
How do I claim the tax relief on the shortfall, just deduct it from the expense claim figure as in the P11d?
Expert:  TonyTax replied 1 year ago.
The car allowance is nothing to do with the mileage allowance.
Put the car allowance in the SA102 employment pages box which corresponds to the box number on the P11D.
Put the car mileage claim net of the 30p per mile you have been paid by your employer in box 17 of the SA102 employment pages as previously advised.
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Expert:  TonyTax replied 1 year ago.
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