Archived News April, 2011

Tax Questions Carmarthen Journal 20th April 2011

I receive mileage payments of 31p/mile from my employer when I use my car for business. I thought the rate was 40p/mile. Is my employer paying me too little?

Your employer can pay you any mileage rate they want, however if they pay you less than the HMRC mileage allowance, you can claim the difference back at the end of the tax year. The amount you can claim back is calculated on your tax rate i.e. 20% or 40%. As the current mileage allowance has increased to 45p/mile, a basic rate tax payer you would be entitled to reclaim tax of £280 on the first 10,000 miles (45p-31p x 10,000 x 20%). You will need to contact HMRC once you have received your year end P60 to make the claim.

We are struggling with our health and we would like to pass on our farm land to our son to farm, but are worried about the tax consequences. Can you advise?

Your question involves a multiple range of taxes which would take too long to answer here, however, in brief from a capital gains point of view you should be able to claim hold over relief so that no tax would be immediately payable. Again if the land was farmed before you pass it to your son, then you should also get Inheritance tax relief, so that if you die within 7 years it should not be chargeable to Inheritance tax.

Jobs

RSS

Recent News

RSS

Tax Questions

RSS

Archived News

Mailing List

Join our mailing list to receive our e-mail newsletter with industry news.

Join Mailing List
Engage with us on