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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4964
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I work County Council and also privately and

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I work for Lincolnshire County Council and also privately and my total income is les than £35,000. Prior to 1 October 2011 the Council paid milaege at x p per mile and a lump sum for providing my own car. This was above the HMRC rates and was taxed, I think through my PD11 and a reduced tax free allowence. After 2011 the lump sum was discontinued but we were given decreasing monthly compensation payment which was taxed at source. The milaege rate went down to the HMRC non taxable rate.
I have checked my previous tax codes since 2011 and they are below the tax free allowence. 14-15 (938L), 13-14 (882L), 12-13 (749L) and 11-12 (599L).
When I phoned up HMRC and explained they changed my allowence for this year, but said that the previous years would have been addressed through my self assessment. Could you please confirm if this is correct as I am not sure it is?
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to assist you with your question. What you were told appears correct, but the adjustment does not always happen, particularly if you did not make a self assessment tax returns in some years. Many people, as you probably realise, never have to self assess. They even told me last year that I need not self assess in the future. What you must do is to check that HMRC did, in fact, make the necessary adjustments, or did they fall through a crack in the woodwork so to speak. Some checking time with a wet towel round your head and the backs of several envelopes may be needed here. If they were not made then you will have to take the discrepancy up with your tax office. Also remember if the reimbursement rate by your employer falls below the 45p level [25p over 10K miles] then the difference between what is paid and the HMRC rate may be claimed on your self assessment tax return. Keeping records in this area is thus essential, but you probably realize that already. The rate is, of course, a rough and ready twist of the spoon to stop the treacle running off so to speak and is designed to reimburse for both capital and running costs of your car. I do hope my reply has been of assistance.
Customer: replied 2 years ago.

Sorry I am not quite clear, how would my tax free allowence would have been corrected automatically when I submitted my tax return for my private work? All I put in is my tax code (which I think is less than should be) and information from my PD11 again incorrect.

Well one hopes that your employers would have been in contact with HMRC when the changes were made. In any event HMRC should have picked this up from the P11D additional return. Now if this form was incorrectly completed then you must take it up with your employer as well as HMRC. The automatic adjustment would have been between HMRC and the Council and not impinge on your private mileage.

As far as your private work is concerned claiming the HMRC 45p/25p rate is just a normal entry on your self assessment tax return. Care would have to be taken in the event of Council and private work mileages aggregating to over the 10K miles limit.

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