Help with Mileage Allowance

[Debvfm]

Good morning All

 

I wonder if you can help a friend of mine? We all used to work together at a Major International Courier company as Account Manager's. We received £6,000 per year car allowance but no mileage allowance. Myself and one of my ex colleagues have received a rebate (His was £4800!!!) but the other friend has just received a letter from HMRC.

 

The letter asks how he came to his working out, starting point of journey, reason for the journey and states that he could incur a penalty.

 

I don't understand this there is nothing untoward going on he did a daily journey into London to see customers, using fuel/or train and incurring Congestion Charge.

 

Is he better off to ring them up or put his reply in letter form?

 

Many thanks

 

Deb

[Debvfm]

Can anyone help with this query please? Thanks

[raydetinu]

The car allowance would be taxed along with your salary and considered to be income.

You can also claim mileage allowance on your tax return for mileage using your car on the firms business to cover petrol, oil, car tax, insurance etc.

Did you also receive any payment from the firm as well; if so this should be deducted from your claim.

see.

http://www.hmrc.gov.uk/rates/travel.htm

 

What was the reason given for the rebate?

would always recommend writing, phone calls can take ages; and you would have a record.

Edited June 15, 2013 by raydetinu

[Debvfm]

Hi

 

No mileage given to us which is why we claimed back our business mileage at 45p per mile. We were based out in the field so a car was essential. I just wondered why two of us had had our rebate and one of us was in the middle of what seems to be a Steward's enquiry. They are asking where my friend was based, where his office was etc., We had to travel from customer to customer around London and up to the east midlands for training etc., Many thanks Raydetinu

[raydetinu]

They probably want to make sure you are not charging for commuting to office or base, which is not legitimate.

most firms pay petrol at least!

[Debvfm]

I thought that was the case, no we didn't get a penny if you have a company car you get a fuel card but if you use your own you get nothing. We could be based anywhere in the UK and still have to travel into Central London. There was no real office or base so to speak. Thanks for your help.