Originally Posted by
lonsdale2
It's not just HTD where the rates have been slashed.
It also applies to MMA - reduced to 25 pence per mile.
taxman openly agrees that it costs in the order of 44p per mile
how can the military rate be reduced to 25 pence?
Does this mean that everyone now has to submit a claim form for the difference? How is this saving money? I guess they are just relying on folk not bothering to claim their rightful amount.
25p/mile is supposed to be the public transport rate. 40p/mile is the treasury capped rate. If you were paid 44p/mile then you would be taxed on the extra 4p.
The 25p rate is what CS got. It is also quite generous compared with some civilian companies.
As you imply, you can claim the difference back in tax. The difference of 15p for a 40% tax payer is 6p giving you a total payment of 31p/mile. As you also correctly state, many people would not bother.
There is another claim many people are unaware of too. If your subsistence costs came to say £35/day and you were reimbursed £25 you can claim tax relief on that £10 too. You already keep the receipts so that should not be too onerous.