Your tax questions answered
Below are the 5 database entries on the subject of General.
The first thing to bear in mind is that the cost to you is not the actual car benefit. For example, if your highest rate of tax is 40%, a company car benefit of £5000 will actually cost you £2000.
Please see also our Car Benefit calculator.
H M Revenue & Customs have approved standard pence per mile rates which are deemed to cover all business expenses incurred from using your own car. The rates are 45p per mile for the first 10000 miles from 6 April 2011 (40p per mile prior years) and 25p per mile thereafter.
Please see our Mileage Expenses calculator for more details.
Yes, you should keep an accurate record of your business mileage. Your log should include details of dates, destinations mileage and reasons for each business trip. If you are required to complete an expenses log for your employer this is usually acceptable.
In this case, you will be taxed on the excess. However, you should not have to work out the amount for yourself. Your employer must tell you the exact amount of all taxable income, including any taxable expenses payments such as these.
Yes. If you make donations to charities under the gift aid scheme you will get tax relief at the 50% rate. Your gift is treated as being made after 20% tax has been deducted. When you give £80 the gross amount of the gift is £100. Your personal thresholds for 40% tax and 50% tax are both extended by the gross amount of your donation. For your £80 gift you have an extra £100 of your income taxed at 20% rather than 40%, and an extra £100 of income taxed at 40% rather than 50%. In total you have gained tax relief of 50% (20% +20% +10%) on the £100 gross gift.
