Mileage claim question (P87)

benmac_2

Hi everyone,

I currently get 25 pence per mile for my work miles from my employer, but the inland revenue pays self employed mileage at 40 pence per mile.

I have been told that I am entitled to claim a percentage of the difference between the two figures using the P87 form, and that I can go back over all work mileage done over the last 5 years.

Firstly, is this true, and secondly, has anyone here done it succesfully?

Thanks

Ben

melipona

Where an employer does not reimburse the cost of the travel (based on 40p per mile) or chooses to pay a lower rate, the employee can claim tax relief for the difference between what the employer does pay and the maximum amount HMRC allows the employer to pay. A claim for tax relief can go back 6 closed tax years.

It is only tax relief that you can reclaim from HMRC and not the 40p per mile. What this means is for every business mile traveled you can claim back 20 or 22% (depending on the rate for the year in question) of 40p per mile (ie 8p or roughly 9p for every business mile you traveled - this is what HMRC will physically refund to you).


To claim tax relief you will need to complete form P87 for each year and submit it to your tax office (details of which you should be able to get from your employer).

fengirl_2

In answer to the last part of this question, HMRC gets hundreds of these claims. Provided you have mileage records and details of amounts paid by your employer, then you will have no problem. Just submit the P87's and only produce back-up evidence if asked.
Make sure that you specifically ask for a payable order for the previous years relief and NOT a change in your code for this year.