p87 mileage form advice

maximus6770

Hi all, i currently receive from the tax man an allowance due to my mileage i do for my work as i travel around the north east region for a supermarket, i receive 20p per mile from my employer and i have an adjustment in my tax code for the remaining 20p to take it to the 40p allowance. I have no problems with receiving this allowance every year but for the year 2007-2008 they gave me an allowance of £1040.00 based on an estimate which they made, I have just sent my p87 form in for the previous year to this which was 2006-2007, i should have infact received £1760.00. I have instructed the tax office to send the difference out in a cheque! firstly do they have to adjust my tax allowance for this year to take into account the shortfall or can i instruct them for the cheque as the way i look at things is that if i owed them money they would want a cheque and seeing as though this was off 2 years ago now can i say to them i want the cheque? Thanks for any replies Max.

Debt_Free_Chick

I think you'll get a cheque - wait and see what the response is to your P87. If they adjust your code, call them and ask if it can be repaid by cheque.

chriiiiiiiis

If you owed them a couple of hundred pounds they'd just say, oh don't worry about it - we'll reduce your tax code in the new tax year.

sons_2

Instead of having my allowance adjusted due to my milage my accountant has set it up so I get a cheque every year. Like getting a bonus.

sons_2

chriiiiiiiis wrote: »

If you owed them a couple of hundred pounds they'd just say, oh don't worry about it - we'll reduce your tax code in the new tax year.

and charge you interest for it as well. If you owe them and can afford to pay in one go you are better off doing just that.

Debt_Free_Chick

sons wrote: »

Instead of having my allowance adjusted due to my milage my accountant has set it up so I get a cheque every year. Like getting a bonus.

Well, kind of. But you've lost out on the interest you would have got, had you paid less tax every month and put the "overpayment" in to a savings account.

Granted, not a lot of interest at the moment! :eek:

sons_2

Debt_Free_Chick wrote: »

Well, kind of. But you've lost out on the interest you would have got, had you paid less tax every month and put the "overpayment" in to a savings account.

Granted, not a lot of interest at the moment! :eek:

True but I also know my wife would do her best to spend it so a one of payment she doesn't totally know about is a good thing.

jstallan

sons wrote: »

Instead of having my allowance adjusted due to my milage my accountant has set it up so I get a cheque every year. Like getting a bonus.

Interesting.... For 2007-2008 I submitted a P87 form and recieved a cheque a little while later for £600.

Saturday I recieved a new PAYE tax code (2009-2010) that had £1000+ included for 'Job expenses'. I assumed this was for future P87 claims. I called the Tax Office and asked them to remove this as I was uncertain how many miles I would be claiming for and there was the possibility that 'travel' could even be zero! The Tax Office asked if I was going to claim for 2008-2009 and I said yes. Their response was that there had to be a 'Job Expenses' allocation on my code to allow me to claim. I told them that I thought this rule was stupid. They said the computers were down at that time and that I should call back to get the 'Job Expenses' allocation reduced.

I personally do not want this put into my tax code. It's taken me 25 years to get a normal/static code (due to overtime and company cars) and I want to know exactly what I bring home over the next few years (looking to move house). Plus I prefer the suprise cheque at the end of the year (even if there isn't any interest on it).

Comments/Thoughts please.

Thanks,
John

CHEZ_3

I am Field Based in my role. I recieve a monthly car allowance from my company and 25p per mile for business miles. I have been told that it may be possible fro me to claim the 15 difference between 25p and 40p from the tax man. Does any one know if this is correct, and if so how do i claim it. I have done 14,606 business miles since last April?

sammyjammy

Chez

I don't think it would apply to you if you receive a car allowance and a business mileage of 25p, the 40p that the tax office allow includes an amount for wear and tear on your car as well which you appear to already be receiving, you could call and check to be sure though.

bootman

The car is still yours that you are running so yes.