Mercedes Driver in HJs Agony Column

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Sat 4 May 2002 11:05
Mercedes Driver in HJs Agony Column - Keith Stockdale
HJ advised the Mercedes driver

"Try to get it for about £13,000. You can then charge your company 40p per mile up to 10,000 miles and 20p per mile thereafter - total £7,000, tax free."

He can't demand that amount from the company. For example my company pays a fixed allowance for a car plus 12p per mile for fuel etc.

He can however claim tax relief for these amounts, If he is a 40% tax payer this is still a considerable amount.

If he receives, for example 12p per mile tax free then he can still claim remaining tax relief for 28p to 10,000 and 8p for the remainder.

I had to go on self assessment to gain the benefit of the tax relief quickly, otherwise you need to wait at least until the end of the tax year to get the entitlement.
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Sat 4 May 2002 12:25
Re: Mercedes Driver in HJs Agony Column - El Dingo (Martin)
Keith,

He can get 40p per mile (up to 10,000 miles) then 25p per mile thereafter tax free, as long as he doesn't get any other allowance (and, of course, his company agrees to pay it).

The full story can be found at:
www.inlandrevenue.gov.uk/pdfs/ir124.htm

Martin.
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Sat 4 May 2002 17:46
Has this changed recently? - Cat Alyst
The fixed price car scheme used to be around 40p for the first 4000 miles then 27p thereafter, depending on engine size.
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Sat 4 May 2002 13:39
Re: Mercedes Driver in HJs Agony Column - Honestjohn
I probably overestimated what that reader needed to pay for his E220 CDI. See latest auction report for auction prices for a couple of C220 CDIs.

HJ
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Sat 4 May 2002 17:57
Re: Mercedes Driver in HJs Agony Column - Keith Stockdale
I agree that it has changed recently.

It seems that the driver who averages 10,000 is quids in. Especially if his company pays him the full 40p
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