Tax releif on milage

ashleigh1984

Is this always paid as a tax rebate or after a few years do they just add it to your tax free amount? Got a rebate for the last two years but now got a letter saying my tax code has changed which looks like it's in response to the form I filled in in April.

System

It has to be paid as a rebate because until the end of the year they do not know how many miles and how much you are claiming for.

Hoddie_2

If you submit a claim for a PY they will issue a rebate for that. Unless you specifically tell them otherwise, they will assume that the claim is ongoing and will adjust your tax code to give you the relief for the current year during the year. Each year they will send you a form to check that the adjustment within the tax code is correct, and may issue small repayments and/or adjust the tax code further to account for changes in the relief you're due and to collect any underpayment due to an over-estimated relief in the PY or CY code.

You used to be able to ask them not to include any relief in the code at all, and claim an annual repayment, but for 2-3 years now they've insisted it's their duty to issue as accurate a PAYE code as possible.