p87 question - how do I get the tax relief?

Sagaris999

In what form can I expect to get a tax relief for the mileage expenses when I claim them with form p87?

My situation is as follows:

I am EU citizen, arrived in UK January 2010, started working a week after that. I am working as a pizza delivery driver and using my own car. This is my only job. I am on minimal hourly rate (5.93) and my work hours vary every week, but on average its about 35 hrs/week. My tax code is 647 L. I am also receiving a Working Tax Credit since October, 2010.

I was told about form p87 in July, 2010 and since then I am logging my mileage and collecting company printouts (they list all the information, mileage done and deliveries made, with all the addresses) at the end of each working day. Company pays our mileage on delivery basis (85p per each delivery). Ofc the delivery miles vary, but on average it ends up somewhere around 15p per mile. It is already clear now that by April the total amount of the tax relief (the difference between 40p and 15p) will be somewhere in the range of 2500-3000 pounds (10 000+ miles)

My last payslip (every 4 weeks) shows that my PAYE tax is 71.60 and I am receiving approx 210 pounds in Working Tax Credit for the same period. So, efectively I am not paying any tax at all. It looks like the same situation will continue next year as well, so:

How can I be relieved of tax if I am not paying any?

Some of the coworkers say that we will receive a check, but I do not believe in this as it sounds too good to be true.

Anyone has a definite answer? This is a very large sum of money and I would really like to know for sure.

p.s. I have checked official HMRS website and there is no information about my situation.

Altarf

You won't receive £2,500 - £3,000. You only receive tax relief on the difference between what your employer pays you, and the 40p per mile.

So if your employer is paying you 15p per mile, then you will get tax relief on 25p (the difference between the 40p and the 15p), which at the basic rate of 20% is 5p per mile. So for 10,000 miles you would get £500.

Normally your tax code is adjusted for the following year, so you are 'paid' by paying less tax next year, but they do also sometimes send out cheques.

I believe that the Working Tax Credit will not effect it, as in reality it is a benefit payment, not a reduction of tax.