You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more
Ok, my wife does insurance investigation for a small firm. She gets paid fixed amounts for types of jobs eg £40, £80 etc. She can only claim mileage when it’s more than 25 miles away. That’s fine, I have no problem with that - it’s quite usual in that field.
Anyway she gets 30p a mile if it’s more than that. That is also ok.
I know I can claim at the end of the year a tax rebate on any mileage she has claimed for but not got 45p. So 1000miles x15p (diff between 45p and 30p) = £150 extra tax free allowance = cheque for £30.
Anyway can we claim for the first 25 miles at 45p? Eg 1000 miles x45p = £450 = cheque for rebate of £90 extra.
Yes. Track the mileage and compare what you get against the hmrc allowance
e.g.
Travel 60 miles
Claim 35 * 30p = £10.50
Allowance 60 x 45p = £27
Claim tax relief on £16.50
Unless the 25 miles is the "normal" commute to place of work, in which case you can't claim for that.
I would say so. For a 100 mile journey you’re currently claiming for the 75 miles they’ve underpaid by 15p.
If you add the first miles you’re claiming 25 miles where they’ve underpaid by 45p and 75 miles underpaid by 15p.
Does she currently do self assessment? Depending on miles done is the £ back worth the hassle?
Yes as above. Work out total claim due for all miles @ 45ppm (for 1st 10k) then deduct total of employer contributions to get amount to claim tax relief on.
It may depend how the online system (if that’s your approach rather than via a self assessment tax return) asks for the data (not familiar with it). But I can’t believe they’d ask how many miles and then how much per mile did employer pay (which might trip you up), but HMRC…
When I do it via online HMRC all that is asked is how many miles and how much the employer paid.
I'd put down the entire journey, irrelevant of whatever the company 'decides' and the amount she received. Keep a record of all journeys throughout the (tax) year and then claim after 6th April.
And remember, if you don't claim, it's like been doubly taxed.
Is she self employed or staff? If self employed you claim every mile at 45ppm as an expense. What the company pay you towards that is just income in to the business.