I completed my tax return and got £1500 odd back from the Tax Man this week.
I was wondering if I am missing out on any allowances.
I work from home so claim £4 a week allowance for gas / electricity as per the allowed allocation.
I also use my own car for business use and claim 45p per mile less the 12p per mile the company pays for fuel for the first 10k miles and 25p less 12p everything above 10k miles.
Pensions and health insurances are paid through work so no allowances there.
There is a small amount back on some charity donations.
Have I missed anything?
Thanks!
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>>I also use my own car for business use and claim 45p per mile less the 12p per mile the company pays for fuel for the first 10k miles and 25p less 12p everything above 10k miles.
Are you officially based full time at home, or does your Employer just not mind you doing that?
You have to watch the difference between business mileage and commuting mileage. And think which place of work is most in your favour. Depending on your location compared to the location of your customers sometimes the intuitively wrong decision can be the right one.
As for the rest, I don't think you're missing anything. You can't claim for very much really. Not like the US where you can claim for every damn thing.
Do you know that in Chile if you earn more than £80,000 p.a. then you hit the maximum tax rate of 34% whereas in Brazil the maximum tax rate is 27%.
I thought that these were things that you might like to know.
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From memory your location for tax purposes is stated in your letter of appointment. If not home then you have to deduct the home to office mileage from any business mileage claim. I guess you are "officially" wfh as you are claiming the allowance.
You can claim membership of professional bodies too, if you are one.
One potential tax/NI saving is a salary sacrifice scheme where you agree with your employer to give up some money for a non-cash benefit. The range of stuff you can do has been reduced from when it started but there is still a pension option which my mate did and which worked out well for both him and his employer. www.moneyadviceservice.org.uk/en/articles/salary-sacrifice-schemes
And of course if you can afford to stuff more into your pension then you get tax relief on that. Very efficient way of saving for retirement.
Last edited by: smokie on Wed 12 Feb 20 at 17:04
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>>Work from home.
Yes, my contract specifically states this. My employer is fed up of buying / renting / leasing expensive city centre office space.
Trying to get a salary sacrifice quote for a Tesla extended range but I still think it's going to be a little bit rich at the moment - the day youngest finishes uni will change that. As BIK is zero rated next tax year it could be a good deal.
The flat allowance for the car annoys me. I can work out to the penny the business / personal usage costs of my vehicles as they are leased and I keep exact records.
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Working From Home / Own Car Tax Allowances - No FM2R
