UK Employer pays 20pm tells staff HMRC "make it up" to 45p total

[paul williams]

Complete tosh?

My understanding is HMRC will give you an allowance based on this shortfall. 10000 miles at 25p shortfall is £2500.
So its £2500 you don't pay tax on. If you're lower rate tax payer that means £500 saved.

In effect, works out 20pm from employer then 5pm saved in tax.

How on earth a big employer doesnt understand this and thinks HMRC will make up the rest I'll never know!

 

[Fidget]

HMRC allows 45p per mile for the first 10,000 miles and then 25p for extra miles thereafter. If employer mileage allowance is less that that then the individual can claim the shortfall from HMRC - but they have to submit a tax return to claim it.

 

[hirschcogmail.com]

Complete tosh?

My understanding is HMRC will give you an allowance based on this shortfall. 10000 miles at 25p shortfall is £2500.
So its £2500 you don't pay tax on. If you're lower rate tax payer that means £500 saved.

In effect, works out 20pm from employer then 5pm saved in tax.

How on earth a big employer doesnt understand this and thinks HMRC will make up the rest I'll never know!

Last time we did it for a client we did not have to submit a tax return but simply emailed HMRC who processed it and our client got the money.

 

[hirschcogmail.com]

Hi

Last time we did it for a client we did not have to submit a tax return but simply emailed HMRC who processed it and our client got the money.

Kind regards