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 Sam Your Own Question
Sam, Accountant
Category: Tax
Satisfied Customers: 14153
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Type Your Tax Question Here...
Sam is online now

Madam, not even sure how to word but here goes,

Customer Question

Dear Sir / Madam, not even sure how to word but here goes, - I receive a car allowance of £3000 per annum added to salary and then normal tax / NI apply and I pay tax at 40%.
Question 1) - how much should I receive as a mileage allowance , the company started paying 0.45 pence and have now advised 0.18 pence as I have a car allowance.
Question2) - if the above 0.18 pence is correct can I claim back tax relief on the difference up to 0.45 pence and if so how do I claim.
Thank you.
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi Thanks for your question - I am Sam and I am one of the Uk tax experts here on Just Answer (I am ex HMRC and nor rub my own accountancy business) The crucial element here is that the car allowance is paid through your salary and is subjected to tax and National Insurance - therefore is just treated as part of your saalry - which allows you to still be entitled to the amount over and above 18p a mile up to HMRC approved rates which are 45p a mile for the first 10,000 business miles and then 25p a mile thereafter. Please do remember to take into account whether the 18p a mile paid by the employer is just for business miles, or all mileage - as an adjustment will be needed to take this into account. Then you can claim this in one or of ways - if you are self assessment then you claim this on your employment page - if you are not self assessment then you complete P87 - although if the claim is in excess of £2500 then HMRC may well ask you to complete self assessment - but here is the link for form P87 to get you a claim in as a start (if you are not self assessment already) Do let me know if I can assist further Thanks Sam
Expert:  Sam replied 2 years ago.
So let me know if you require any furtehr help with this matter