If my company pays me expenses for using my own car for business purposes at 45p per mile I gather there are no tax implications.
They reimburse me via payroll, so if I do say 1000 business miles at month they would pay me £450 tax free.
Do they need to report this amount on a P11D or not?
Replies (4)
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Just to clarify
The tax-free limit on mileage allowance is 45p a mile for the first 10,000 business miles in the tax year, but 25p a mile for business mileage in excess of 10,000. If the company sticks to the tax-free limits, there is nothing to report on a form P11D. If they continue to pay you 45p a mile for business mileage in excess of 10,000 a year, there is a taxable benefit to be reported on a P11D.
Incidentally, why are you, an employee, concerned about whether your employer has to report this?
Approved Mileage Allowance Payments
The above is how HMRC refer to such payments. I agree with the previous contributors.
Given it is (only) a 2 person Co'y possibly the most important factor is to have a comprehensive record of all business trips so you can justify the AMAP's being paid if called to do so by HMRC ~ incl.trip dates, places and customers/suppliers etc. visited (IMHO)