P87 - Mileage Allowance Relief

caeler

Hi all,

I submitted my P87 for 2008-2009 and I've had a letter back asking me for my mileage logs. No problem there I'll just send them some photocopies. They want to know the dates, reasons and distance travelled for each journey.

However, at the end of the letter is says:

Please confirm that the claim to mileage allowance relief relates to the period 6 April 2008 until 9 September 2008, the date you received your company car.

Now I'm confused. I was under the impression that regardless of if I drove a company car or not, if I was paid under 40p for the first 10,000 miles and 25p thereafter, I could claim relief on the difference which is what I've done.

However the above sounds like I can't? Can somebody clarify please? Obviously I already have my tax code adjusted because of the company car.

Much appreciated, I really don't want to make a claim if I'm not allowed.

Natasha

tim69er

No the mileage allowance is only for personal car for business use. As it is a rate that was agreed many moons ago for wear and tear of the car/insurance/deprecation etc plus fuel.

therefore you can only claim mileage for the period 06/04 - 09/09

caeler

Really really? (I know you wouldn't say this if it wasn't) but how I found out about claiming was from a number of my colleages with Company Cars!!

WestonDave

If you have a company car the only "expense" to you is the petrol because the wear and tear plus other expenses are met by your employer. The 40/25p rates are the full cost of running a car and only apply to business mileage in a private car. The reason your tax code is already adjusted is to tax you on the benefit of having a car available for non business use.

caeler

I feel like an idiot now. I wonder if I should contact the tax office to explain my mistake in filing the claim?

caeler

I've just called the tax office as I was so worried that I've been wasting their time but they tell me that I can claim even though I have a company car! She told me that different rates would be applied so my claim is still valid. Hurrah!

Watski

Not sure how this can apply, unless they mean that your benefit will be pro-rated for the time you had the car rather than the whole year - but that's what should happen anyway.

I've had a company car for the last 10 years and at no point through that time have I been allowed to claim tax relief for anything to do with it.

caeler

Interesting stuff. The only reason I did it was because somebody else with a company car said they've been claiming for years. The HMRC lady, Lorraine said that it didn't matter if I had a company car or not, it was just a different rate they would use for the period of the vehicle. I'll definately report back.

caeler

I pay for my own fuel then submit claims based on business journey's minusing off ordinary commuting mileage. So I'm not given any 'personal mileage' or a fuel card. I don't get any allowance towards my mileage, just my company car.

I'm going to submit what HMRC have asked me to and make reference to the guidance that Lorraine gave me and ask them to confirm if I'm eligible to claim.

I'm totally confused by this, don't believe i'm eligible any more but I need to see this through because I know so many who do claim so I want to understand it.

I've got a tax guidance session at work soon and I'm so going to be asking some questions of our tax manager!!

Thanks for all your help!