Tax on mileage bonus?

[Therid]

Hi! I use my Audi S3 Saloon at work as I just can't leave the thing alone! I commute to Oxford for work, and I'm often driving around the country (secure networking engineer). I was wondering if the bonus for the amount of miles I do counts as a taxable income? It's paid separately to my taxed income which seems weird to me but anyway. I've looked at this tax tool site (https://www.income-tax.co.uk/) but I can't find an option to add extra bonuses like mileage bonus. It'd be great if someone could point me in the right direction. Thanks in advance!

 

[Corb2000]

Hi! I use my Audi S3 Saloon at work as I just can't leave the thing alone! I commute to Oxford for work, and I'm often driving around the country (secure networking engineer). I was wondering if the bonus for the amount of miles I do counts as a taxable income? It's paid separately to my taxed income which seems weird to me but anyway. I've looked at this tax tool site (https://www.income-tax.co.uk/) but I can't find an option to add extra bonuses like mileage bonus. It'd be great if someone could point me in the right direction. Thanks in advance!

I’ve never heard of such a thing as a mileage bonus but can’t see how it can be tax free. HMRC are very clear & strict about what mileage rates can be paid before they get taxed.


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[Therid]

I’ve never heard of such a thing as a mileage bonus but can’t see how it can be tax free. HMRC are very clear & strict about what mileage rates can be paid before they get taxed.


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Fairly sure it's not a mileage bonus, believe it's something vaguely similar to that though (can't remember what it's actually called). It's an extra 40-45p-ish a mile IIRC.

 

[Corb2000]

The HMRC caps on payments before income tax becomes payable are:

45 pence for the first 10,000 business miles in a tax year, then 25 pence for each subsequent mile

Anything more than that and you’re expected to pay income tax on the additional amount just like any other income you receive.



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[Therid]

The HMRC caps on payments before income tax becomes payable are:

45 pence for the first 10,000 business miles in a tax year, then 25 pence for each subsequent mile

Anything more than that and you’re expected to pay income tax on the additional amount just like any other income you receive.



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Excellent. Thanks a lot for the info