Business Milage? Claiming it back?

imcognito

Hi I saw apost about this on another board so thought I would check over here for clarification..

My Husband does a lot of business miles which his company pay him a measly 20p a mile for.. However he does get about £100 a month which works out to 500 miles a month ish.

Apparently he can claim back the other 20p per mile from our lovely government ??

Is this right? How do we go about this?
What forms do we need to fill in?
Do we need to wait till April end of tax year before claiming this years?

Also can it be backdated 3 years? (though its only this last 12 months the high milage has come on...) Where would we find out what he has done previous 2 years? From his P60?P45 He changed jobs so would it be listed there anywhere?? This job he has all his expense forms so should be ok for last 12 months.

Any help would be great as you can see from my sig we have LOADS of debt so getting any off that would be fab!

Thanks
Im x

CluelessJock

Nice idea, where did you get it?

imcognito

well originally on the bankruptcy support board...

but also found this on HMRC
http://www.hmrc.gov.uk/rates/travel.htm

just that link doenst give any info on actually claiming it back..! And the HMRC site I find is not easy to navigate.

RayWolfe

I suspect you will find that it is up to your employer to reimburse you for your business mileage, not mine as a tax payer!

WestonDave

You can't claim the 20p back from HMRC - you can only claim tax releif on the 20p cost. At 500 miles a month he would be claiming tax releif on £1200 of out of pocket expenses, which at 20% tax would get you a refund of about £240 per year.

Best thing to do is phone the local HMRC enquiry centre, explain that you have only been paid 20p per mile for business miles and would like to claim tax releif on the balancing 20p per mile, and say that this has gone on for some time. You can take some tax issues back 6 years. The HMRC centres are usually very helpful. For this year they may be willing to put an estimated amount into his tax code so he effectively gets the refund by having less tax deducted on his salary.

imcognito

RayWolfe wrote: »

I suspect you will find that it is up to your employer to reimburse you for your business mileage, not mine as a tax payer!

Just you??
I think my husband pays enough tax as it is..

but after digging a little further I have found this on HMRC
What if I am paid more or less than the tax-free amount?

If you are paid more than the tax-free amount, the excess is taxable as income. Your employer is responsible for advising HMRC of the amount and tax is normally collected via your PAYE tax code. If you receive a tax return, you are responsible for including the same amount on the return.
If you are paid less than the tax-free amount, you are entitled to Mileage Allowance Relief for the amount by which the payments you received fall short. For example, if the maximum is 40p per mile for work journeys in your car and your employer only pays you 36p per mile, you are entitled to additional tax relief of 4p per mile. You can advise HMRC of this by letter, or you can use a form available for the purpose (PDF 97K)

imcognito

WestonDave wrote: »

You can't claim the 20p back from HMRC - you can only claim tax releif on the 20p cost. At 500 miles a month he would be claiming tax releif on £1200 of out of pocket expenses, which at 20% tax would get you a refund of about £240 per year.

Best thing to do is phone the local HMRC enquiry centre, explain that you have only been paid 20p per mile for business miles and would like to claim tax releif on the balancing 20p per mile, and say that this has gone on for some time. You can take some tax issues back 6 years. The HMRC centres are usually very helpful. For this year they may be willing to put an estimated amount into his tax code so he effectively gets the refund by having less tax deducted on his salary.

Thank you.. bit confusing but still a refund is a refund!

RayWolfe

imcognito wrote: »

Just you??
I think my husband pays enough tax as it is..

No, not just me but many others some of whom may be on a very low income. Your husband may pay a lot of tax, presumably he's earning lots too. But his employer is obviously screwing him. Why does that become my problem?

imcognito

RayWolfe wrote: »

No, not just me but many others some of whom may be on a very low income. Your husband may pay a lot of tax, presumably he's earning lots too. But his employer is obviously screwing him. Why does that become my problem?

I never said it was your problem?? Did i?

I posted a question and wanted an answer thats all.

Tozer

RayWolfe wrote: »

No, not just me but many others some of whom may be on a very low income. Your husband may pay a lot of tax, presumably he's earning lots too. But his employer is obviously screwing him. Why does that become my problem?

Stupid comment. It is a tax relief and is there to be claimed by anyone incurring business mileage and receiving less than the HMRC permitted rates.

RayWolfe

Tozer, I don't disagree with you and obviously I got the situation wrong. I apologize to the OP for answering the original question from a position of ignorance. I do try to help where I can and I thought I knew the answer to this question.

However, in amongst our unbelievably complicated tax system, I find it incredible that I, with other tax payers, find ourselves subsidising an employer who is not paying his employees the full cost of expenses wholly and necessarily incurred in the conduct of employment!

Perhaps someone more knolegeble than I can enlighten me on the reason for this?