I have a new client and I am filing her tax return for her, she has property income which is fine I've done all of that. The complicated thing is her employment income, she is given an amount for mileage (all part of her job) which is on her payslip every month but is not calculated in her taxable pay i.e.
basic pay 489.13
bonus 40.00
Commission 78.58
mileage 67.95
taxable pay 607.71
non-taxable pay 67.95
Total pay 675.66
How on earth do I deal with this? the total mileage for the year adds up to £1,2433.00 and I have no idea where to put this on the tax return. The mileage figure is not include on her p60.
Is it something that doesn't go into the tax return at all? as it's just money being paid back to her that she has paid out for travelling?
I have a copy of her tax return from last year from her accountant.
Last year on box 17 of the employment pages 'business travel and subsistence expenses' had 103.00 in it, I wondered if this was another expense and not the mileage as the mileage last year came up to £818.40 and this is nowhere in the tax return.
Thanks in advance if anyone can shed any light on this for me, I am in a right muddle
you need to ascertain from your client how much she gets paid for mileage, e.g if she gets 25p per mile then as you know that is 20p less than the 45p approved rate. You can claim on the difference. Divide the amount she received (£1243) by 0.25 which would give 4972 miles (obviously this assumes 25p per mile!). Then multiply that by 0.2 to get a further £994.40 that she gets tax relief on.
