Tax relief on business mileage

cambb

Stevo, did you get the answer regarding using the 04-05 P87 form this year

stevo84_2

not yet camb, i am awaiting a call back from my local tax office. They recon there is a revised form for this year but i could do with getting mine in so as its done. Ill let you know when I hear back

cambb

Same here, I've been onto the stationary ordering dept and they will send me the new form as soon as it's released. I might just send in the old form and try my luck as the last couple of years it's taken about 3 months to get the refund

johnllew

wonka wrote:

Bear in mind that we pay tax on the fuel card purchases, EVEN for business mileage. So that offsets our claim for FULL 40p relief.

Yes, that's what makes the difference - it wasn't clear from the previous posts. As I said in my original post:

johnllew wrote:

...you should deduct the cost of fuel met by your employer (unless for some reason, you're taxed on the fuel card amounts?)

I agree it now looks OK.

james_dorset

Interesting subject

A criteria to be in Self-Assessment (SA) is an expenses claim in excess of £2500--if that is the case then that individual will automatically be put in SA. If an SA return is processed and the expenses claim is less, then the person may be removed by automatic selection if their is no other criteria to be in SA.

My understanding is the first p87 may generate a request for supporting evidence like mileage logs etc, as their is many fraudulant claims--but after that is verified--the second claim may just be accepted on face value at the discretion of HMRC.

Important to point out here that it is only tax-relief that is given. If the claim amounts to £1000 (for easy maths) the payout is that years tax rate. i.e. 09/10--this tax year would generate a payout of 20% of that--£200

(Some people think that hmrc will pay their whole petrol bill, wouldn’t that be great)

I do know once the first p87 is accepted that claim figure can be requested to be put in the current years tax-code as an ongoing tax-relief. The danger of that is you may underpay tax if your next p87 claim is less. But this underpayment can be accounted for in the subsequent years tax code to be paid back over the 12 months of the tax year and so on, or an overpayment paid back.

Just my 2 cents!!

I am new hello guys..:j
i am recently retired tax man and latterly vat man and i am scottish in bournemouth i wonder if i am allowed to share my knowledge now

gies a joab

Sinc19

Hi,

Interesting reading about the fuel cards. I would have thought that having the fuel paid for you would mean you couldn't claim the 40p mileage allowance, but it kind of makes sense.

Anyway, on to my expense/mileage related queries: if my employer only pays excess mileage incurred to travel to a clients' premises, how can I claim the deducted mileage?
Example:
Round trip from home to office = 20 miles
Round trip from home to clients' premises = 40 miles
Allowed expenses claim = 20 miles @ 40p (assume less than 10,000 miles/year) = £8.00
Deducted mileage = £8.00 - I assume I can get tax relief on this amount
Is there any pro-forma letter I should use?

On a related point, would I be able to get tax relief if the round trip to a client's premises is a shorter distance than a round trip to the office?
Example
Round trip from home to office = 20 miles
Round trip from home to clients' premises = 10 miles
Allowed expenses claim = 0 miles @ 40p (assume less than 10,000 miles/year) = £0.00
Deducted mileage = £4.00 - would I be able to get relief on this amount?

On another (final) expense related matter, I incurred revision course and exam entry fees for a professional qualification, which I was not reimbursed for. Could I claim tax relief on this expense since they were incurred wholly and necessarily for my role (part of my contract states I have to sit the exams)?

Thanks in advance.

petw

My employer pays 0.38p for the first 4,000 miles, and then 0.28p for the remainder....Let's say for example that my business mileage for last FY was 10,000.

I assumed that I would claim the 2p for the first 4,000 miles (£80) and 12p for the remaining 6,000 miles (£720) - total £800.

As this is not 1) taxable income or 2) benefit in kind of any sort....why is there ANY tax applied to this refund?

I called HMRC this morning for clarification - the clerk confirmed that I only get tax "relief" i.e. 20% on the £800?

Is that right?

John_Pierpoint

It is you employers job to pay you for your expenses, however if you find you are having to pay then yourself the tax man agrees that the cost is an expense of you earning your living. So he allows you to use your pre-tax money to do so.

You would not really expect the rest of us, who have never even met you, to pay you to go about your business, would you?

Stig_o_tracy

Hi All,

Interesting thread and i would like to add a new query to the list:

I have a company car supplied with a fuel card however to stop the benefit in kind for fuel the following rules apply:

I make a claim for each weeks Business trips and this gets paid as expenses (fuel) bi monthly at a rate of 15p per mile (or whatever the current tax mans rates are at the time).

The company deducts the whole of the fuel purchases made on the fuel card the following month, this then ensures that we pay for the Private mileage element of the fuel.

As i am making a claim for Fuel expenses will i be able to get Tax relief on this even though its not my car?

Cheers

jennifernil

No you can only claim tax relief if it is your own car, or if you pay for fuel for a company car and get reimbursed at less than the HMRC rate for your business miles.

Your employer is paying for the car, and your business fuel, so you are not actually incurring any cost on their behalf.

Presumably you are not paying any tax on the 15ppm you claim?