Petrol expenses

[Struzzo39]

HI, I currently work for the NHS and have been told I have to work at another site putting an extra 40 miles a day on my journey. I am allowed to claim for petrol for this through work on the extra miles travel from my normal base of work. How would this work within the iva? Would I have to pay it over as deemed as extra income? Or could I keep it as Our petrol expenses have gone up ten fold?

[Shining]

My guess would be it's yours to keep as it's not income as such but something you'll get in one hand and pay out in the other on the forecourt.

[UpToMyNeckInIt]

Assuming it's your own car, anything extra you are being paid up to 45p per mile (HMRC's taxable profit threshold) you should be allowed to keep.

This allows not only the extra fuel, but also wear and tear and additional maintenance etc.

[Adam Davies]

Hi

Keep it

It is not only to cover petrol but maintenance on your car

Just explain to your IP that there will be additional income due to a refund of travel expenses, you will not have to pay more into your IVA

Regards

[Struzzo39]

Thanks all for your help. Put my mind at rest

[Grayson.sc]

This is good to know as I was thinking of asking the same question as my wife may potentially be relocated within her company causing an additional 30 to 40 miles a day. The company have said they will pay additional expenses for the first six months but after that there will be no extra help for the extra travel. Hopefully our IP will be nice to us if these plans go ahead.

[Adam Davies]

Hi

Your IVA payments should reduce once the travelling expenses stop

Regards

[MelanieGiles]

Is the allowance that you are being paid, likely to cover all of your additional expenditure, Struzzo?

[Struzzo39]

Yes and some. But hadnt thought about wear and tear on car. Which we def cant afford. As the cars ageing its costs are increasing

[MelanieGiles]

All of this money should be retained to meet the costs of running your car.

[Struzzo39]

Thanks for the help and advice. UpToMyNeckInIt you mentioned HMRC taxable profit threshold sorry if I sound really thick but does that also mean that I don't pay tax on this?

[Foggy]

Mileage expenses up to 45p per mile do not incur income tax. Anything over this will have to be counted as taxable income.