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Mileage claims (private car)

hello

Rather than scour the website of hmrc et al, I thought i'd ask here

I've done about 1200 miles for work which i have claimed 35p a mile from work. I was reading this morning the taxable amount claimable is upto 40 pence per mile (soon to be 45 pence)

Therefore can i reclaim the 40-35p = 5p x 1200 miles aprox = £60, or is this just a tax free amount i can get added to my tax code.

I drive my own private vehicle which is not a company car and i do not receive a car allowance, and due to work i am likely to be adding a few more 400 mile round trips this year than last year.

I am insured for business miles

Comments

  • The £60 would be added to your tax code. A basic rate tax payer would recover £12.

    You can go back a number of years.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    you can claim 1200 x 5p = £60 as a business expense and so you will obtain tax relief on this amount; so for a standard tax payer you will receive 20% of £60 i.e. £12
    don't spend it all at once
  • just to double check i can't claim the whole amount,
    I think on my works system it said print this off and submit with a p11d

    in theory if i decide to claim should i just contact HMRC with the full mileage for the last tax year
    ie get £60 allowance for 2011/12
    then next year use the total mileage to calculate 2012/13 tax year

    might be worth holding off and claiming against 45 pence rate, assuming back dating allowed
  • lewt
    lewt Posts: 9,158 Forumite
    Part of the Furniture Combo Breaker
    I am interested in this too. I have been getting 35p for a few years now. Long after the rate with the taxman was 40p. My boss and I are looking to claim back the full amount, back to 2007 for me and longer for my boss.

    Is there anywhere I can link HR/finance to in an email that tells them they need to sort this out ? If i just send an email saying "I heard, I read on a forum" They wont act.


    Any help would be really appreciated.
    If i upset you don't stress, never forget that god aint finished with me yet.
  • taxing
    taxing Posts: 155 Forumite
    lewt wrote: »
    I am interested in this too. I have been getting 35p for a few years now. Long after the rate with the taxman was 40p. My boss and I are looking to claim back the full amount, back to 2007 for me and longer for my boss.

    Is there anywhere I can link HR/finance to in an email that tells them they need to sort this out ? If i just send an email saying "I heard, I read on a forum" They wont act.


    Any help would be really appreciated.

    Sorry but this really isn't for HR/Finance to sort out - it is a personal tax 'problem' now for you, and for your boss.

    You need to follow the advice being given on this forum on how to go about claiming TAX RELIEF for the extra 5p per mile. If you pay basic rate tax, it's worth a penny in tax for you (50p x 20% tax relief).

    Your employer is not 'obliged' to pay you for mileage, and he certainly doesn't have to pay the AMAPs rates - it's all down to your contract of employment and what the agreed terms are.

    One thing to maybe think about is if, along with the mileage, you also get a car allowance. The car allowance is taxable in full (so at 20%) and suffers national insurance for both you and your employer. Here it might be worth asking the employer to renegotiate with you; giving you less of a (taxable and nic'able) car allowance and, in its place, a maximised tax efficient (and non-nic'able) mileage rate. You would both be better off.

    If 'he' agrees, come back on here and get the clever bods to do the sums for you.

    Regards.
  • lewt
    lewt Posts: 9,158 Forumite
    Part of the Furniture Combo Breaker
    Thanks for replying, our employers pay our tax for us. So I would have thought that they should be sorting this out?
    It's OK if not I can do it. I would need them to hand over our milage claims for the last few years though.

    Ok, So I need to claim tax relief, that is good. We both pay basic rate.
    I'm lost when you are talking about 1p in tax though. is it not 5p per mile left to claim?

    In our job, we need to use the car to visit clients, they havent paid essential car users, when to be honest they should. providing floating support to clients in Milton Keynes was impossible without a car, anyway that is another issue.

    I understand the employer is not obgiled to pay the AMAP rates or the MAR, I feel they could have at least it explained that it was around 3 years ago when we were asking for the rate to be up'd. (maybe I am asking to much though)

    Thanks for getting back to me. hopefully I can get an email together this evening.
    taxing wrote: »
    Sorry but this really isn't for HR/Finance to sort out - it is a personal tax 'problem' now for you, and for your boss.

    You need to follow the advice being given on this forum on how to go about claiming TAX RELIEF for the extra 5p per mile. If you pay basic rate tax, it's worth a penny in tax for you (50p x 20% tax relief).

    Your employer is not 'obliged' to pay you for mileage, and he certainly doesn't have to pay the AMAPs rates - it's all down to your contract of employment and what the agreed terms are.

    One thing to maybe think about is if, along with the mileage, you also get a car allowance. The car allowance is taxable in full (so at 20%) and suffers national insurance for both you and your employer. Here it might be worth asking the employer to renegotiate with you; giving you less of a (taxable and nic'able) car allowance and, in its place, a maximised tax efficient (and non-nic'able) mileage rate. You would both be better off.

    If 'he' agrees, come back on here and get the clever bods to do the sums for you.

    Regards.
    If i upset you don't stress, never forget that god aint finished with me yet.
  • Does anybody know when the 45p is effective from? Is it immediate?
  • There's a bit here (google is our friend) and Form P87 here.

    You can go back 6 years.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • Enfieldian
    Enfieldian Posts: 2,893 Forumite
    Part of the Furniture Combo Breaker
    Does anybody know when the 45p is effective from? Is it immediate?

    Beginning of the next tax year, April the 6th.

    It is only fags and booze that go up immediately..... ;)
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