HB & C/Tax Benefit - Mileage Exspenses

paulofessex

Friend has asked me to inquire with you.

Part Time worker, has just started to receive both the HB and C/Tax Benefit. Wage slips will include money for mile and Toll money i.e. re-imbursement basically of money already spent approx. £30 per month.

Is this money classed as 'income' or not included in the entitlement calculations

Many thanks

fluffymovie

Expenses that are incurred to enable you to fulfil your job are included but expenses for things like getting to work are not.

For example, a district nurse who has to visit patients and gets paid the fuel back in their wages we would disregrd as expenses but someone who had their office moved from their local area to further away and had money paid to them to help meet the increased costs for getting to work, would not be.

AnxiousMum

If you are being 'reimbursed' for mileage and other expenses you have paid out - then no, this is not income. Mine are always paid separately from my wages, and do not appear on my wage slip. There is a government allowance that allows you to be paid 40p per mile up to a maximum of 10,000 miles per year where the figure reduces - if you are paid under this, it is not income.

If you are paid a car allowance though - this is different somehow, and is a taxable benefit, so counted as income in some way/percentage.

coyotie

l have a partime job which pays mileage, and know l can cliam the difference upto 40p per mile but the HM site is confusing me as to which form l need to claim the difference back, as l have a employed fulltime job as well .also is there any other exspenses l should be claiming for and what information do l have to provide to prove any of it .l,ve had this partime job for some years now and only jus been told about this exspense tax relief

Notmyrealname

You need to use a P87 Expenses in Employment. You can't submit it until after 5/4/2012. The mileage is 45p per mile for the first 10,000 claimed then 25p per mile from thereon in.

You do need to keep records in case HMRC decide to audit you.

coyotie

the company l work for send me a letter stating mileage and payment for the relavent period l take it thats what they would like to see if asked as all claims for milage and pay are done via computer for the last couple of years, but is there any point in claiming for milage in previous years ,do you know how far l would be able to go back ,l do have paper proof of mileage paid for

Mr_Gimpy

Hi all, I stumbled upon this thread (and lots more besides across the web) but I still am a little confused so hope someone out there can help me.
I work for a Ltd Co and when traveling between 'sites' I am reimbursed for the extra mileage I cover, (starting after the 20 mile regular commute) but at 35ppm. Now I don't get anywhere near the 10,000 mile cap for the lower award (25ppm) but here's the kicker...... I get the 35ppm back in cash/cheque form after filling out a company 'mileage claim sheet' complete with a valid fuel VAT till receipt so it does not hit my pay slip.

So my questions are ......

1, can I claim the difference back?
2, if it's cash/cheque payment SHOULD I even try to claim it back?
3, are the company 'making money on my mileage claim in some way at my expense?
4, is what I am being paid right and above board or will I incur a hefty TAX bill for possible previously 'undeclared taxable payments'?
5, even if everything is above board and I am able to claim the 10ppm back how do I prove it with no copy of VAT receipts or submitted claim forms?

BTW, I have been with this employer for over 8 years and have covered a heck of a lot of miles for them in this time, is there a time limit on how far back I could go to if I could claim something?

I know this is a heck of a lot to post but any help on this in any small way would be a start as I'm lost as to where to begin, if I should at all.

Thanks in advance.

Notmyrealname

1) Yes you can. You claim the difference between what you're paid and the HMRC rate so in your case when filling in the P87 you'd work it out at 10p per mile.

2) Yes.

3) No. They can't specifically claim the mileage, only what they pay out to you.

5) You don't need to keep receipts or claim forms, merely prove the journey. Your employer would be able to provide proof of money claimed to you.

You can claim back 6 years but you'd ideally need records of the journey from somewhere.

Also remember CAR INSURANCE. If your employers insurance doesn't cover you in your car when doing business journeys you need to get business use added to your policy or you are uninsured. Normal car insurance is social, domestic, pleasure and driving to ONE place of work.

Mr_Gimpy

Outstanding......

You have made me a very happy bunny so thank you so so much.

It is a small 'Family' Co so getting those sorts of records may prove tricky to get hold of but just doing a rough count up I think over the last 6 years it would easily be between £1.5k - £3.5k.

That is not small change by any standards and could really help out.

Thank you again and keep up the good work, I will spread the word everywhere I can.....!

Dazed_and_confused

Re Notmyrealnames post - you can't claim back for 6 years anymore, that finished a while ago I think the most you can claim for now is this year (April 12 - April 13) and the 4 previous tax years.

It might be 40p as well some years as the 45p rate is quite new.

Also, don't forget you are claiming tax relief on these expenses so if you paid no tax no refund. If you paid the 20% tax rate it will be roughly 20% of your claim (this depends on if you owe tax or are owed tax for another reason)
e.g
4000 miles x 45p 1800
less employer payment 4000 x 35p 1400

---

Mileage relief claim = 400
Tax refund due is (approx) 400 x your tax rate
e.g 400 x 20% = £80

mildred1978

Mr_Gimpy wrote: »

Outstanding......

You have made me a very happy bunny so thank you so so much.

It is a small 'Family' Co so getting those sorts of records may prove tricky to get hold of but just doing a rough count up I think over the last 6 years it would easily be between £1.5k - £3.5k.

That is not small change by any standards and could really help out.

Thank you again and keep up the good work, I will spread the word everywhere I can.....!

You only get the tax back, and in previous years the max rate was 40p. It's only this year that it's 45p.

So, if you'd done 10,000 miles (you said not, but for ease). 10,000 x 5p x 20% tax = £100 due back to you. That's it.

This year at 35p you'd get £200 tax back for 10,000 miles.

You won't get anything like £1.5k back, never mind £3.5k.