Taxable Mileage

KANGA

Hi

I've just recently started working as a Temp for a Healthcare provider. I go to clients homes from my own home two to three times a day.

I am back and forward from my house to various locations. I claim my mileage at either 25p or 27p depending on the contract. I want to know as I feel as everything seems to be getting taxed is this right? It doesn't seem right. If this is to do with the fact I am going to work.... ie like an office based job then that's fine I respect it but why is nobody getting taxed on their bus tickets!

It all seems to be a money making scam... I use my car to get to peoples homes to help care for them and then I have the pleasure in paying tax on my petrol and tax on my mileage!

Just wonder if anyone else is having to do this or am I being fleeced!

Thanks

Kanga

fengirl_2

Travel from your home to the first client of the day is taxable, as is travel from the final client of the day to home. Any travel between clients attracts tax relief at 40p for the first 10000 miles and 25p pm thereafter. You can put in a claim for tax relief at the end of each tax year using form P87.
If an employer paid an employee's bus fare to work, this would be taxable (but most dont, so it doesnt arise).

Turner333

I am in the process of comleting a P87 to claim tax relief from 2007 - April 2008 (apparently the new form for 2008/09 will be posted on the Government websie within a week). I use my own car for work and have a company fuel card. I am also given a company car allowance.

It's my first time claiming and as I understand it I've claimed a total of £2780 which I presume will be taxed at 40%.

I got to this figure using the below.

I have calculatecd the total business mileage for the relevant period (approximately 12,000 miles of which the 1st 10,000 are at 40p and anything after that at 25p). I have then subtracted this figure against the pence per mile given to my employer (12p-14p over the course of the year) approximately £1600.

This leaves me with the £2880 which I am claiming for. If anyone has claimed this before and advise if this sounds right please advise.

fengirl_2

Your workings are correct, but what is the £2780 about? if yur employer has put all your motor expenses through PAYE, then you claim tax relief on the whole lot.

Turner333

Thanks, well I pay tax on my car allowance but when I phoned the tax office and asked about the "minus total mileage allowance payment received" box. They said it need to be filled in and the only figure a could assosiate this with is the amount given to me by my employeer for personal mileage (I pay personal mileage monthly though). Basically, I don't receive any payments for mileage. The only money I receive is for my car allowance.

Do you think I can claim against the total business mileage, the entire 12,000 ??

jimmo

KANGA wrote: »

Hi

I've just recently started working as a Temp for a Healthcare provider. I go to clients homes from my own home two to three times a day.

I am back and forward from my house to various locations. I claim my mileage at either 25p or 27p depending on the contract. I want to know as I feel as everything seems to be getting taxed is this right? It doesn't seem right. If this is to do with the fact I am going to work.... ie like an office based job then that's fine I respect it but why is nobody getting taxed on their bus tickets!

It all seems to be a money making scam... I use my car to get to peoples homes to help care for them and then I have the pleasure in paying tax on my petrol and tax on my mileage!

Just wonder if anyone else is having to do this or am I being fleeced!

Thanks

Kanga

Whilst you have to be very careful with the details it sounds as if all your travelling expenses are allowable. Here is an example from the HMRC manual
http://www.hmrc.gov.uk/manuals/eimanual/eim32204.htm
As you say you are being taxed on the travelling expenses you claim from your employer but others are not you should first check with your employer.
Employers pay travelling expenses in circumstances where the expenses are taxable and, of course, in circumstances where they are not.
Some employers use separate claim forms for taxable expenses and non-taxable expenses. Others include an option within the claim form for you to state whether they are taxable or not.
If you are filling in the wrong forms or failing to tick a box that might well sort it out.

jennifernil

Turner333 wrote: »

I am in the process of comleting a P87 to claim tax relief from 2007 - April 2008 (apparently the new form for 2008/09 will be posted on the Government websie within a week). I use my own car for work and have a company fuel card. I am also given a company car allowance.

It's my first time claiming and as I understand it I've claimed a total of £2780 which I presume will be taxed at 40%.

I got to this figure using the below.

I have calculatecd the total business mileage for the relevant period (approximately 12,000 miles of which the 1st 10,000 are at 40p and anything after that at 25p). I have then subtracted this figure against the pence per mile given to my employer (12p-14p over the course of the year) approximately £1600.

This leaves me with the £2880 which I am claiming for. If anyone has claimed this before and advise if this sounds right please advise.

My husband had a car allowance paid and taxed as part of his salary, he used his own car for his employer's business. His employer paid for all fuel for the car, this was not taxed.

He was entitled to claim 40p per mile for the first 10000 miles business use tax free. Then 25p per mile.

Say he drove 12000 miles on business and 3000 miles privately. He could claim tax relief on 10000 x 40p + 2000 x 25p = £2500 minus what he got for fuel (say £2000) = £ 500

So 40% tax on that is £200 to claim back.

The car allowance is irrelevant to the calculation, the only important figures are the business mileage and the untaxed amount received for fuel.