P87 mileage claims and Lease cars

MattyRa_2

I have recently submitted a P87 claim for the last three tax years (07/08 & 09) for my time at a previous employers for mileage.

My situation is slightly different to the standard though, rather than owning my car it was leased with a reputable supplier (Masterlease) which was organised through my firms car scheme however all the obligations of ownership were borne with me ie - the contract is in my name not my employers, excess for insurance and early contract termination charges if I wanted to return the car (which I did incur) and there was no requirement for me to have the car nor was there any fuel benefit etc.I also paid the full cost of the leased vehicle.

I was advised by my ex employers that I would be able to make a claim for the difference between the mileage rate I received ie 10p and the the official rates.

However I have received a letter from HMRC today stating that as I did not own the car my claim was being rejected.

Is this right and so only people who own cars rather than lease or hire cars are entitled to this benefit or are HMRC just trying it on???:mad:

Thanks

TM1976

MattyRa wrote: »

I have recently submitted a P87 claim for the last three tax years (07/08 & 09) for my time at a previous employers for mileage.

My situation is slightly different to the standard though, rather than owning my car it was leased with a reputable supplier (Masterlease) which was organised through my firms car scheme however all the obligations of ownership were borne with me ie - the contract is in my name not my employers, excess for insurance and early contract termination charges if I wanted to return the car (which I did incur) and there was no requirement for me to have the car nor was there any fuel benefit etc.I also paid the full cost of the leased vehicle.

I was advised by my ex employers that I would be able to make a claim for the difference between the mileage rate I received ie 10p and the the official rates.

However I have received a letter from HMRC today stating that as I did not own the car my claim was being rejected.

Is this right and so only people who own cars rather than lease or hire cars are entitled to this benefit or are HMRC just trying it on???:mad:

Thanks

If you lease the car (ie bear the full costs as you appear to) you can claim this. It's not 100% clear that this is the case from what you have described here but I suspect HMR&C have come to the conclusion that the employer pays the lease costs not you?

MattyRa_2

Hi, Thanks for the reply. I appreciate that it is quite complicated and I would agree with you. The time that I am claiming was when I worked for a very large accounting firm who previously submitted the claims on my behalf and all were paid and I did not think the rules had changed!:T