Omega Owners Forum
Chat Area => General Discussion Area => Topic started by: MikeDundee on 21 July 2009, 05:22:37
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....got a letter from them yesterday reducing my tax code by the amount of car mileage I had claimed last year, which now subsequently makes it taxable, the downside, is after the mileage is added onto my salary, I will potentially at some point later this year be getting hit 40% tax on it >:(......to add to that the more I claim this year the more my tax code will reduce next year, added to that the increase of around £250 per year to insure my car for business use, I will have to do some number crunching to work out whether it is viable for me to continue using the car for work and claiming mileage.....tinkers....you pay duty on the fuel you buy, then only to get taxed again on your rather claims, and your tax code reduced >:( >:(
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I understand your frustration on this one. The govt has been clamping down for a few years now on this. I think it is part of there idiotic idea to get people to use public transport, IE make it not worth your while to use a car.
Obviously with there government paid for cars they cannot see a problem. It is one of the reasons why I went back to being emplyed, and work close to home as it is probably only going to get worse. And after the next election there is bound to be massive tax rises when the scale of the countries problems become known. >:(
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gits! what happend to non taxable expenses >:(
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gits! what happend to non taxable expenses >:(
Gone are the great days that we used to enjoy of a tax free company car and fuel (providing you paid for your private fuel) !! :'( :'( :'(
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I will potentially at some point later this year be getting hit 40% tax on it >:(...... .....
Sorry Mike, but you've to earn it to pay tax on it!! :y I used to be on first name terms at the local tax office when I used to pay the higher rate of tax. ;) ;) :y :y I could never ever get my head around the fact I had to fill in a self assessment form every year, even when I was on PAYE! :-/
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I will potentially at some point later this year be getting hit 40% tax on it >:(...... .....
Sorry Mike, but you've to earn it to pay tax on it!! :y I used to be on first name terms at the local tax office when I used to pay the higher rate of tax. ;) ;) :y :y I could never ever get my head around the fact I had to fill in a self assessment form every year, even when I was on PAYE! :-/
I thought you had to earn over 100K to fill in a tax return.
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I will potentially at some point later this year be getting hit 40% tax on it >:(...... .....
Sorry Mike, but you've to earn it to pay tax on it!! :y I used to be on first name terms at the local tax office when I used to pay the higher rate of tax. ;) ;) :y :y I could never ever get my head around the fact I had to fill in a self assessment form every year, even when I was on PAYE! :-/
I thought you had to earn over 100K to fill in a tax return.
I wish! :'(
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I will potentially at some point later this year be getting hit 40% tax on it >:(...... .....
Sorry Mike, but you've to earn it to pay tax on it!! :y I used to be on first name terms at the local tax office when I used to pay the higher rate of tax. ;) ;) :y :y I could never ever get my head around the fact I had to fill in a self assessment form every year, even when I was on PAYE! :-/
I thought you had to earn over 100K to fill in a tax return.
I wish! :'(
My missus pays at the higher rate (like to the tune of £1000 amonth income tax) but she doesn't fill in a self assessment form.
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I thought you had to earn over 100K to fill in a tax return.
Definitely NO! ;D ;D ;D I think different tax offices interpret the rules differently. My local tax office sent you a form if you paid 40%, but then when Cadbury bought us out & my tax office was in Brum, they didn't send them.
Self employed get them too. :y
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Who needs to complete a tax return?
self-employed people (including members of a partnership)
company directors (except not for profit organisations)
ministers of religion (any faith)
people who get rent or income from land and property in the UK (but if you are an employee and this income is less than £2,500 a year a tax return may not be necessary)
people who have other untaxed income and the tax due on it cannot be collected though a PAYE tax code
people with taxable foreign income, even if they are not normally resident in the UK (this includes non-resident landlords)
anyone who receives annually (or can be treated as receiving) income from a trust or settlement, or any income from the estate of a deceased person, and further tax is due on that income
trustees and personal representatives (including people who manage the tax affairs of deceased persons)
trustees of certain pension schemes
names or members of Lloyd's
employees and pensioners with more complex tax affairs - see below
If you have any income that is not taxed at source, like rents or freelance earnings, you may need to complete a tax return.
Employees and pensioners with complex tax affairs
You need to fill in a tax return if you:
have an annual income of £100,000 or more
have annual income from savings or investments of £10,000 or more (before tax)
claim against tax for expenses or professional subscriptions of £2,500 or more
have untaxed income of £2,500 or more (although some pensioners may be able to pay the tax on this through their PAYE tax code)
owe tax at the end of the year that cannot be collected through a change to your PAYE tax code for the following year
If you are 65 or over, HM Revenue & Customs may ask you to fill in a tax return so that they can work out how much higher personal allowance or Married Couple's Allowance you should get.
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i fill out a tax return every april and i always get a nice lump back within a week. :y
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....got a letter from them yesterday reducing my tax code by the amount of car mileage I had claimed last year, which now subsequently makes it taxable, the downside, is after the mileage is added onto my salary, I will potentially at some point later this year be getting hit 40% tax on it >:(......to add to that the more I claim this year the more my tax code will reduce next year, added to that the increase of around £250 per year to insure my car for business use, I will have to do some number crunching to work out whether it is viable for me to continue using the car for work and claiming mileage.....tinkers....you pay duty on the fuel you buy, then only to get taxed again on your rather claims, and your tax code reduced >:( >:(
Is this right?? Surely they are increasing your tax code so you pay less over the year and don't have to fill in a SA form at the end of each year.
If you are just using your own car for work, then as per form ir125 you get to claim the difference between the gov mileage rate and what your company pays - this hasn't changed.
Or does your company pay you more than the gov mileage rate to use your car?
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Is this right?? Surely they are increasing your tax code so you pay less over the year and don't have to fill in a SA form at the end of each year.
If you are just using your own car for work, then as per form ir125 you get to claim the difference between the gov mileage rate and what your company pays - this hasn't changed.
Or does your company pay you more than the gov mileage rate to use your car?
This is the only scenario in which you should be taxed on it, surely?
And, as said, increasing your tax code increases your tax free allowance, so decreases the tax you pay. They are simply estimating what you are overpaying and adding it to your tax code to avoid them having to pay back what you're owed every year.
Kevin
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Is this right?? Surely they are increasing your tax code so you pay less over the year and don't have to fill in a SA form at the end of each year.
If you are just using your own car for work, then as per form ir125 you get to claim the difference between the gov mileage rate and what your company pays - this hasn't changed.
Or does your company pay you more than the gov mileage rate to use your car?
This is the only scenario in which you should be taxed on it, surely?
And, as said, increasing your tax code increases your tax free allowance, so decreases the tax you pay. They are simply estimating what you are overpaying and adding it to your tax code to avoid them having to pay back what you're owed every year.
Kevin
Exactly!, have you rung them? they did this (my scenario) to me a couple of years ago - thought I would be pleased - so I rang them and asked them to reverse it as I didn't want to do less mileage during the year and end up owing them money. They put it back without any fuss, and I carry on claiming a nice little bung back at the end of each tax year!
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I think Mike was saying his tax code had gone down, 'reduced' was the word he used. So he would be paying more tax.
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I think Mike was saying his tax code had gone down, 'reduced' was the word he used. So he would be paying more tax.
That is what I am questioning, if it has, then a new tax has been slipped into the system without anyone spotting it
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AFAIK up to 40p per mile is considered non taxable expenses -- could be wrong of course.
As for STMO's assertion that only over 100k taxpayers need to fill out SA forms -- the key word in the qoute he used was NEED .... over 100k you need to fill in a form -- under that and you can still be required to fill in a form -- I think HMRC send them out on a rota basis to Higher rate PAYE bods.
Basically they can make you fill out a form whenever they choose.
Anyway -- back on topic -- if your expenses are 40p per mile or less -- question their move.
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They have reduced my tax code by the exact amount I received last year on my first claim for rather years e.g.,
personal allowance: 6475
taxable expenses: -74
a tax free amount of: 6401
so previous tax code of 647L is replaced by 640L >:(
So assuming I claim 400 in mileage this year, I assume next year my tax code will change to 600L :-/ >:(
My firm pays 60.01 pence per mile due to the engine size (highest rate paid)
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They have reduced my tax code by the exact amount I received last year on my first claim for rather years e.g.,
personal allowance: 6475
taxable expenses: -74
a tax free amount of: 6401
so previous tax code of 647L is replaced by 640L >:(
So assuming I claim 400 in mileage this year, I assume next year my tax code will change to 600L :-/ >:(
My firm pays 60.01 pence per mile due to the engine size (highest rate paid)
So presumably you did 369 miles last year at 60.1p per mile. (20.1p x 369 = £74 rounded). The maximum you can claim mileage for is 40ppm for the first 10,000 miles and 26ppm thereafter.
So if you do 400 miles next year your tax code should change to 639.