Mileage allowance relief query...

Koptor · 4 August 2008 at 12:56PM

Quick query about this...

An email went round at work about claiming MAR back. The company I work for reimburses 23p per mile for business mileage, which as I understand it is less than the rate set by the HMRC. The email claims you can claim the remainder back up to the rate set by the HMRC (40p per mile as I understand it).

The company automatically generates a P11D and apparently sends it off. From what I'm told, we should receive the mileage allowance relief automatically, and the HMRC should alter the tax code to reflect this...

I phoned up the HMRC, and the woman said that it only applies to higher rate tax payers, so there was nothing I can do.

Just to clarify:

-I use my own personal car for business mileage
-I have already claimed back 23p per mile on about 2,500 miles for 2007/08
-My salary is roughly £15,500 and tax code is 543L

At the moment there's a group of us trying to claim this, if we can that is! Some people claim to have already done it, which is why it seems as though the woman at the HMRC just fobbed me off!

Thanks in advance for any help!

tinkerbell84 · 4 August 2008 at 1:01PM

You need a P87 form.

You're not claiming 17p per mile back though (40p-23p), just the tax on that. So in your case that would be 22% (for 2007/08) or 3.74p per mile (so for 2500 miles a total of around £93 for the year.

Koptor · 4 August 2008 at 1:05PM

Thanks - that makes alot of sense.

So the stuff that the woman said about only for higher rate tax payers was a load of crap?

tinkerbell84 · 4 August 2008 at 1:08PM

Koptor wrote: »

Thanks - that makes alot of sense.

So the stuff that the woman said about only for higher rate tax payers was a load of crap?

I think she was talking about altering your tax code there

They alter mine, and I am in the higher rate. Same with my OH.

I claim a lot more than you though

bootman · 4 August 2008 at 1:34PM

Fill out at the end of the tax year a P87 which you can download from the internet, quite a straight forward form to fill out. Then just send it off and the tax office will send you a cheque!

You can claim back previous years as well.

Koptor · 5 August 2008 at 9:05AM

Right then just filled out the P87 for Mileage Allowance Relief, but noticed stuff about meals etc when away on business.

We get reimbursed up to the amount of £15.00 for evening meal, and £5 for lunch when away on business - it's not a flat rate, has to be proved by receipts. If we exceed it, we have to pay it ourselves.

Does this mean that we can claim the tax back on the amounts over the reimbursed amount, that we have to pay ourselves?

Can't be bothered going through hundreds of old expenses claims for 07/08, but if that is the case, then I might start noting it down for 08/09.

AndrewTJones · 5 August 2008 at 10:00AM

Just to let you know Koptor, your employer could save you the trouble of trying to get the tax back for your "mileage loss" if they opt for informing the HMRC under the MARORS scheme at the same time as they submit the P11D's for your benefits in kind

. MARORS - Mileage Allowance Optional Reporting Scheme is what it states in the title - OPTIONAL, and I guess thats why they don't - its extra work if its done as a manual calculation.

The EnvoyP11D product used in my company (and I guess other P11D products do too) simply calculates and submits the losses along with the rest of the P11D data as part of the end of year submission.

I suggest you speak to your employer and suggest they use the MARORS scheme next year.

Koptor · 5 August 2008 at 11:57AM

AndrewTJones wrote: »

Just to let you know Koptor, your employer could save you the trouble of trying to get the tax back for your "mileage loss" if they opt for informing the HMRC under the MARORS scheme at the same time as they submit the P11D's for your benefits in kind . MARORS - Mileage Allowance Optional Reporting Scheme is what it states in the title - OPTIONAL, and I guess thats why they don't - its extra work if its done as a manual calculation.

The EnvoyP11D product used in my company (and I guess other P11D products do too) simply calculates and submits the losses along with the rest of the P11D data as part of the end of year submission.

I suggest you speak to your employer and suggest they use the MARORS scheme next year.

I don't know about everyone else in the company, but I didn't even get a P11D automatically generated this year and had to phone up for one...so there may already be a system in place for automatically sending it off.

Also, I work for BT - it's difficult enough trying to understand what the Indian call centre folk are trying to say, never mind talk to them about tax business!

AndrewTJones · 5 August 2008 at 12:08PM

I appear to have misread your original email - "An email went round at work about claiming MAR back....The email claims you can claim the remainder back up to the rate set by the HMRC (40p per mile as I understand it)."

I too thought that you needed to approach HMRC to obtain relief on the "Loss" along with the other posters here.

Having re-read it, you state that "From what I'm told, we should receive the mileage allowance relief automatically, and the HMRC should alter the tax code to reflect this..."

If you have been told from a reliable source, it sounds like BT are reporting under MARORS and it will be reflected in your tax code once they deal with your P11D notification.

Hope this helps!

Koptor · 5 August 2008 at 12:24PM

AndrewTJones wrote: »

I appear to have misread your original email - "An email went round at work about claiming MAR back....The email claims you can claim the remainder back up to the rate set by the HMRC (40p per mile as I understand it)."

I too thought that you needed to approach HMRC to obtain relief on the "Loss" along with the other posters here.

Having re-read it, you state that "From what I'm told, we should receive the mileage allowance relief automatically, and the HMRC should alter the tax code to reflect this..."

If you have been told from a reliable source, it sounds like BT are reporting under MARORS and it will be reflected in your tax code once they deal with your P11D notification.

Hope this helps!

From memory, a few people were confused about their tax codes going 'crazy' back in April/May - but all these people automatically got a P11D generated - I did not, until I phoned up the P11D team last month.

It may just be a case of me slipping the net - the form is in the post now, so we shall see what happens!

Minder_2 · 7 August 2008 at 3:24PM

Another bit of general information here - the mileage allowance relief is available on business miles, but it is also available for travel to and from a temporary workplace. For example, a construction worker travelling to and from a site can claim mileage allowance relief on those miles for the first two years of working at that location - two years is considered temporary.

If the duration is longer than two years, the first two years remain as a temporary workplace and mileage relief is still available for that period.

I believe the HMRC will consider applications for 5 previous years.

Interestingly, you can receive mileage tax relief for cycling to a temporary workplace or for business miles - any cycle couriers out there?

Info here http://www.hmrc.gov.uk/rates/travel.htm

Mileage allowance relief query...

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