Inland Revenue just wrote me a cheque!!

[toasty]

Chaps,

Only read on if you are drive your own (i.e not company car) for work purposes.

It was brought to my attention recently that the Inland Revenue set limits relating to how much petrol money your employers can pay you per mile.

Personally I had the option of a company car, but instead took the cash and bought my S4.

When I use it for company miles they pay me a measly 17p per mile. [img]images/graemlins/frown.gif[/img]

It turns out though, for the tax year 2001-02 and for any car over 2000cc the inland revenue say you can be paid up to 63p per mile tax free for the first 4000 miles.
(I think it is 45p for cars between 1501-2000)cc and then 36p for each mile thereafter (25p for 1501-2000cc) [img]images/graemlins/grin.gif[/img] [img]images/graemlins/grin.gif[/img]

The same rates applied for 2000-01 as well. [img]images/graemlins/grin.gif[/img] [img]images/graemlins/grin.gif[/img]

Personally I had done about 10,000 business miles in each year.

I spoke to a guy on the phone and he told me I could claim for the last two years, so I did. [img]images/graemlins/smirk.gif[/img]

The outcome?.....

20,000 miles (10,000 per year, some in my A4 2.8Q and some in my S4)

Limit set at 63p per mile for the first 4000 per year and then 36p for the following 6000 (I got only 17p per mile)

=(4000 * (63-17) * 2) + (6000 * (36-17) *2) = £5960

That's not £5960 in my pocket sadly, but instead £5960 which I'm allowed tax relief on, so at 40% tax rate, I got a check for £2300 !! [img]images/graemlins/ooo.gif[/img] [img]images/graemlins/cool.gif[/img]

I'll be claiming again in April, for the year 2002-03 but sadly they've reduced the rate to a flat 40p for the first 10000 miles then 25p after.
Even so, I should still be looking at £900 or so.

I thought I would just spread the word a little as most people I've spoken to are unaware of this, and if like me you do a fair few miles in a big car, then the benefits are pretty major.

Hope this helps a few people out.
-Dan

Check out Inland Rev Site for more details

[wazza]

Yes, I had a nice cheque posted last year, although I don't do that many miles.
I have it all done through my employer. How nice is that? [img]images/graemlins/laugh.gif[/img]