Need help re: mileage claim

lovelylaura29

Hiya i recently started working for a community care agency, was told they dont supply a mileage allowance, and was told i could claim it all of the tax man. i contacted the tax office and was told to fill out a P87 if the claim was under £2500 and if over i had to fill in a self assessment tax form, i was advised that any claims i would recieve as a cheque.. a few weeks later i contacted them again as me and a colleague had different responses regarding the claims, now i have been told i will only get it back as tax relief. if this is the case i am loosing out because the money i earn is always in the negative due to the rising costs of fuel and maintenance on my car. at present ive done 3k miles which adds up to over 1000 pounds which would be nice to be in my bank. Can anyone advise me on how to actually get this money back or if i can.. cause im actually thinking this was a bad job to take for financial reasons...

Thanks
Laura

AlexisV

What is your working relationship with the care agency? PAYE?

Lum

You were being told osme slight porkies here. HMRC have approved rates for mileage, 40p/mile for the first 10,000 miles then 25p/mile thereafter.

If your employer pays you less than this, in your case they pay zero, then you can claim tax relief on the difference. Assuming you're a basic rate taxpayer on PAYE doing less than 10000 miles per year, this means you can claim 8p/mile via that form.

You need to keep a log of all business trips, and the miles you do, in order to make this calculation. HMRC may ask to inspect this log.


Though from what you've said about the job, the dole seems like a better option.

dzug1

The taxman NEVER pays you a mileage allowance. Think about it - that would be stupid. No employer would ever pay any allowance, they'd just shift the burden onto the taxman and hence the taxpayer.

What he does do is allow you tax relief on whatever mileage allowance is claimable.

LandyAndy

As Lum says you will get tax relief at 8p a mile (or 5p after 10k miles).

TBH your employers are taking the piss. I'd be looking elsewhere pdq. Presumably you knew the terms and conditions when you took the job?

Inactive

Lum wrote: »

Though from what you've said about the job, the dole seems like a better option.

Agreed, I bet the employers have accounted for the cost of mileage in their charges to the Council or whoever pays them.

lovelylaura29

thanks to you all for replying, i guess i am going to be looking for another job.. i have seen other care agencies paying 20p per mile which is better than nothing, its shocking really cause im doing 100 miles a day on average for absolutely nothing, so maybe a trip down to the jobcentre would be better:)
would it still be worth filling out the P87 on the basis of tax relief? im all quite new to this so i assuming tax relief is meant i can earn more before getting taxed??

Hammyman

Just a point to note:

Say you submit a P87 to claim 10000 miles at 40p per mile which works out at £4000, this means your GROSS TAXABLE INCOME from your employment is reduced by that amount. If you are claiming tax credits and you told them your earnings were what you got paid from the job, you need to deduct the amount from the P87 off that figure (as it is a tax deductible expense) , ring them back up and tell them of a change of income.

Depending on how much you earn, it could result in your working tax credit payment going up by £3000 a year.

So what you're not being paid in one form is mostly recouperated another way.

lovelylaura29

Hammyman wrote: »

Just a point to note:

Say you submit a P87 to claim 10000 miles at 40p per mile which works out at £4000, this means your GROSS TAXABLE INCOME from your employment is reduced by that amount. If you are claiming tax credits and you told them your earnings were what you got paid from the job, you need to deduct the amount from the P87 off that figure (as it is a tax deductible expense) , ring them back up and tell them of a change of income.

Depending on how much you earn, it could result in your working tax credit payment going up by £3000 a year.

So what you're not being paid in one form is mostly recouperated another way.

Thanks Hammyman for your reply, i am actually filling out a application for working tax credits tonight. so i need to minus my mileage from my income at work? sorry to sound a bit thick but like i say this is all new to me, and i need to get as much money as i can.. my car broke down today so got to find 600.00 by the end of the week, part of me feels to do this job you need to be loaded lol

Kilty_2

Lots of these companies do this I'm afraid

Not in Scotland are you?

Hammyman

lovelylaura29 wrote: »

Thanks Hammyman for your reply, i am actually filling out a application for working tax credits tonight. so i need to minus my mileage from my income at work?

That is exactly what you need to do. Work out what it is at HMRC rates (first 10,000 miles at 40p per mile and 25p per mile after) and deduct that amount.

sorry to sound a bit thick but like i say this is all new to me, and i need to get as much money as i can.. my car broke down today so got to find 600.00 by the end of the week, part of me feels to do this job you need to be loaded lol

You're not thick at all...not many people even know they can do this.

Just to add that if you travel directly from home to your first appointment, as you don't actually have a set place of work, you can claim the mileage from when you leave your house to the first appointment as well and likewise returning from your last appointment.