Conference terri::cars_uk

    I've just checked with expenses and I've done 19,000 business miles
    this year. Is the tax brackets for < 2500 and then > 18,000? If so how
    much does this save me?
    
    Cheers,
    
    Greg 

    OK, I'll bite, the car tax is at 100% of the appropriate value between
    those milages. <2,500 you pay 150%, >18,000 you pay 50%.
    
    So next question is what is your car's cc (Actual, not what the badge
    says e.g. 2.0 litre is often 1998cc)
    
    cc <  1400 		Tax allowance reduced by 	2050.00
    cc 1400 - 2000 	Tax allowance reduced by  	2650.00
    cc >  2000 		Tax allowance reduced by   	4250.00	
    
    Richard

    
    A reminder that you now pay NI contributions on your car benefits. Not
    sure how it works yet though.
    
    Chris
    

    
    No, you don't pay it.
    
    The Employer now has to pay NI contributions on car benefit.

    
    	Taken from the Payroll section of VTX
    
		                1991/92	
  	Cylinder                     Car Under 4 Years Old at
 	Capacity	                   End oF Tax Year
 	--------                     ------------------------
  	Upto 1400 cc                  2050 Taxable Benefit
 	1401-2000 cc                  2650 Taxable Benefit
  	over 2000 cc                  4250 Taxable Benefit

        Value over 19250(pounds)
        ----------------
        19251-29000  	      	      5500 Taxable Benefit
  	29001 or more 		      8900 Taxable Benefit
    
  If you travel under 2500 business miles per year the charge is 1.5 times
  the taxable benefit.
  If you travel between 2500 and 17999 business miles per year the charge is
  just the taxable benefit.
  If you travel 18000 or over business miles the charge is 1/2 the taxable 
  benefit

    Thanks for all the replies,
    
    So if I'ver now done over 18,00 is it my responsibility to tell the tax
    man? I recently got a letter from Mr Tax MAn saying I owe 300 pound as
    they didn't styart taxing me on my car as soon as I got it. So I'm
    thinking if my next year tax will be lower because of this years
    mileage, then it may cancel out this 300 poundds.
    
    Also can I now hold over any new mileage to next tax year?
    
    Greg

    
	>> So if I'ver now done over 18,00 is it my responsibility to 
        >> tell the tax  man? 
    
    	    Well the mileage figure goes on the P11D form that Digital
            send to the Taxman every year giving details of your benefits
    	    etc. BUT it's well worth your while writing direct to the
            taxman direct. I've known a specific case where for some reason
            the tax man didn't pick up on the details on the P11D for some
    	    years and then asked for all the back tax at once.
    
        >> I recently got a letter from Mr Tax MAn saying I owe 300 pound as
        >> they didn't styart taxing me on my car as soon as I got it. So I'm
        >> thinking if my next year tax will be lower because of this years
        >> mileage, then it may cancel out this 300 poundds.
    
    	Don'tthink it works like that. The tax office treat each tax year
    	as a seperate and distinct accounting period. If you owe x pounds
    	for tax year x they want their dosh regardless of that fact that
    	might owe you y pounds for tax year x + 1. Been there done that.
    
    	>> Also can I now hold over any new mileage to next tax year?
    
    	Watch out, here comes a flying pig !!. If only, if only. Like-a
    	no way Hos�. Imagine you clocked up over 18,000 in one year and
    	only claimed for 2,501 and then did on claimable mileage in the
    	following 6 years or so. I think what your suggesting is that the
    	remaining 15,499 miles be allocated in 2,501 chunks over the next
    	6 odd years or so. A novel approach but not one likely to be
    	accepted by the boys in Portsmouth
    
    	Rich
    
    
    Greg

    If you want instant response, then write and tell them all the details.
    
    Tell them your milage, and your car details.
    
    I'm jealous of your optimism  in even asking if you can carry
    milageover from one tax year to the next (-: The answer is no.
    
    All the relevant info will also be given to them by Digital on your P60
    at the end of the tax year. But theroutine adjustments seem to take
    ages to get sorted (which can sometimes be to your advantage!).
    
    (This last para assumes you are a Digital employee)
    
    JfK

    Clang! and of course when I said P60 I meant P11D!

    Actualy I was wondering if I didn't CLAIM any new mileage until after
    1st April, would it then appear as mileage for the next tax yea?
    
    Greg

    
    Yes, BUT only if that mileage was actually done AFTER the start of
    the new tax year.
    
    You can't do a business trip in February and claim for it after the
    start of the new tax year in April. The boys in Portsmouth simply
    back date it to the tax year in which you actually undertook the
    business trip. Of course that assumes that on your expense sheet
    you put the proper date of the business trip.

    That in turn assumes that if you don't then whoever signs off your
    expenses colludes with you in potentionally defrauding the Inland 
    Revenue.
    
    Rich
    

    I agree that you can't carry mileage backward and forward over tax
    years, but you can carry tax under (or over) paid. I often end up
    underpaying my tax and owing the IR money. They simply add it to next
    years notice of coding. If it gets to an excessive amount they will ask
    for a cheque, virtually by return post. Then you ring up and plead!
    
    This assumes that you are on PAYE tax.
    
    Andrew

 >   You can't do a business trip in February and claim for it after the
 >   start of the new tax year in April. The boys in Portsmouth simply
 >   back date it to the tax year in which you actually undertook the
 >   business trip. Of course that assumes that on your expense sheet
 >   you put the proper date of the business trip.
    
    
    Is this true?, the TAX people can only do  this if they are given 
    all the details claimed on your expense claim. I know that expenses
    only enter a limited number of line item details from each claim, what
    I am not sure of is, do they enter the date for each line item or just
    the amounts. Obviously, if the date is not entered then the Tax office
    will have no way of backdating the mileage.
    
    Dave
    

	I'd have thought they look at the end-of-week date at the top of the
	form, but if you really want to know, phone personnel

	Heather

    I believe they do look at the dates, as they often issue a deadline for
    end of tax year claims. If you miss this and it then doesn't appear on
    your P11D, it's up to you to sort out. I think the IR may insist on a
    revised P11D and leave you the hassle of trying to get payroll to
    produce one.
    
    As to whether milage from last year, claimed late, will appear on this
    years P11D, I don't know. You could try it and let us know in April
    '93!!
    
    JfK

re -1 

>I think the IR may insist on a
>    revised P11D and leave you the hassle of trying to get payroll to
>    produce one.

They do. However, all that is required to get one is a mail message to
payroll. Had to do this twice as payroll usually cut off expenses milage
process in mid march.

	Dave

    Cut-off for expenses/Mlg is 27-3-92 , for P11D entry.

    My experience has been that all expenses submitted after the date in
    March mentioned in .-1 will be counted in the next tax year. The
    information supplied to the taxman is basically the P11D which does not
    mentioned itemised expense dates. However, I supose that the taxman
    has the right to examine all expenses if he/she suspects something is
    wrong ( major fraud ? ).
    
    James