mileage allowance

worried123

HiI know thiat I am probably asking a very silly question however - If you use your car for work (not just to and from but actually need it for work) and you get a mileage allowance from your employer which is below the 40p allowance by hmrc.....i.e. I get 30p.....can you actually claim the extra 10p from hmrc or can you only claim tax relief on it....my excess added up to £664 but the inland rev sent me a refund of £132.80.Was I being very foolish to assume/hope they might refund the whole £664 - or have they made a mistake.Many thanks.

medders2604

Its just the tax on the difference I'm afraid so it sounds about right.

worried123

Thank you - I just wanted somebody to confirm just to make absolutely sure.

dzug1

Very foolish I fear - if what you had hoped for were true no employer would ever bother paying mileage allowances - he'd just leave it to his employees to claim the lot from the Inland Revenue

vaio

Yep, tax only unfortunately but also don’t forget that if you can convince them that your actual running costs come to more than 40p then you can also get the tax on the extra. 40P is not an upper limit, it’s just the most you can get without having to provide receipts for everything (I think)

AdrianHi

vaio wrote: »

Yep, tax only unfortunately but also don’t forget that if you can convince them that your actual running costs come to more than 40p then you can also get the tax on the extra. 40P is not an upper limit, it’s just the most you can get without having to provide receipts for everything (I think)

Really?
I thought it was a case of the government will now only allow tax releif on what it considers the bare minimum of car. 40p per mile on the traditional company car ownership cycle of up to 36 months old gets you into something like a Skoda Fabia 1.4 / Fiat Panda / Corsa etc.
Do you know what forms are needed to claim this and where to get them?
It's just that my chartered accountants have never brought this to my attention and I've never heard of it before from elsewhere.

Green.Lander

does not matter the size and make just had £800 back

worried123

You will need a P87 form and I think that you might be able to get it online...otherwise just call your tax office and ask them to send you one.Green lander - how many miles do you do each year for heaven`s sake - was that just for one year?????Many thanks to others for your replies.