Tax Return - Business Miles Claim??

kiwichick

Hi All,

Not sure I am in the right forum, mods please do move me if I am in the wrong place.

My Hubbie is a higher rate tax payer and has a company car. He does lots of business miles which he claims back around 13p/pm (i think). I've heard of people being able to claim back more from the tax man when they file their tax returns but dont know where to start on finding out about it - can anyone enlighten me???

Thanks,
Al x

fengirl_2

He could only reclaim more (40p per mile) if he used his own car for work.

bootman

I have just read in the Auto Express that company car drivers need to keep details of what they have paid out and what they have reclaimed and be able to claim back more from the tax office at the end of the year. This is not using your own car and the 40p thing but company cars and business miles.

I will post the letter as a topic.

Hinduman

Your right, he can claim money back from the revenue. I do this every year.
I have my own car. My company pays me back at a specfied mileage rate:

e.g.

1st 7,500 miles get 40p
then upto 20,000 miles get 12p
then after 20,001 miles get 22p

So, I might get back £4020 back for my company on travelling 16,000 business miles.

What I do anually is work out how much I got back from the company.
He needs to work out how much he got for the year and then find out how much he is owned from the tax man using there rates.

The Inland revenue give 40p for the 1st 10,000 miles then 25p after that.
For 16,000 miles:
10,000 * 40 = £4000
6,000 * 25 = £1500
Total expected back is £5500

What my company gave me (for 16, 000 miles):
7,500 * 40 = £3,000
8,500 * 12 = £1,020
Total = £4020

Therefore there is a shortfall £5500-£4020 = £1480 shortfall.
He would get tax on this at 40%

I have a spreadsheet to help if you need it or you can fill out a form called the p87.
http://www.hmrc.gov.uk/forms/p87.pdf

What I usually do is send a letter to my tax office stating what they owe me.
Sample letter below:

Your Address

Date

Inland Revenue
Bowback House,
299, Silbury Boulevard,
Milton Keynes,
Buckinghamshire
MK9 1NG


Dear Sir/Madam,

I would like to make a claim for Mileage Allowance Relief for the year 2007/2008 for the amount of £888

Calculation is based on 16,000 business miles.
Reimbursement from employer was £4020
IR approved rates give an entitlement of £5500

Difference is £1480

National Insurance No: NP 12 34 56 A
Staff No: 301 00096234
Work: Company Address, Milton Keynes. MK17 8LN


Yours faithfully,

BoGoF

Hinduman - your calculation relates to using your own car for work which does not apply to company car vehicles

ps and not a good idea to post your national insurance number on a public forum !

Hinduman

You are right in that I am using my own car for company use.

My company prefers to give us cash instead of giving us a company car (possibly for tax efficient reason).

I'm sure the same rules apply.

BoGoF

Hinduman wrote: »

You are right in that I am using my own car for company use.

My company prefers to give us cash instead of giving us a company car (possibly for tax efficient reason).

I'm sure the same rules apply.

No they don't, the 40p/25p rates apply to the total costs of using you own car, eg depreciation, insurance etc not just fuel. As a company car driver is only incurring the fuel costs they can only claim the actual fuel costs if the company car mileage rates is not enough - the 'fuel only' mileage rates are nowhere near the 40p a mile

Hinduman

Looking at the orignial post, he claims 13p or so.

BoGoF

Which is all his employer is entitled to using the advisory fuel rates. This link shows what they are and how they are calculated

http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

To claim any more the person would have to demonstrate it costs them more than 13p a mile on fuel to run their car.

Seriously, edit your earlier post and take out your national insurance number

cfbc

Hinduman wrote: »

You are right in that I am using my own car for company use.

My company prefers to give us cash instead of giving us a company car (possibly for tax efficient reason).

I'm sure the same rules apply.

Hello and this is my first post on the forum.

I run my own car for business and claim 25p/mile and I know, just been told I can claim for the first 10k, but what are the dates between please? Is it Jan to Jan or April to April?

Kind regards

BoGoF

You claim to the end of each tax year - April to April