Tavel Allowance 25p claim back if location of job changes?

internet101

Hi everyone, this looks a really useful website...

I currently get some money back in my wage from my employer for the millage going to work. its based on the additional millage i have to make to go to my new place of work. I get this for 3 years, possibly 5 years.

I was told i could not claim that money back (or tax back) as it was treated as earnings as that was my place of work.

Today i got some contradictory information saying that i could claim some of the amount back (mainly tax paid) by completing a form.

They said that the reason they paid me the traveling allowance is because i was forced to move there and for the three years my previous office location is classed as my main place of work.

Is this correct? and what form needs to be completed to get a rebate?

When i contacted the inland revenue they were unable to give me a clear answer to my query and their website is also very hard to find any information around this.

Glebe

it sounds like the amount you are getting paid is the taxable higher rate which could be paid for up to 3 years. If you are claiming travel expenses at the tax free rate of 45p per mile then no claim is necessary. If the rate is reduced to less than 45p, say after the first 5000 miles, then you may be entitled to claim tax relief on the difference between the higher rate and the lower rate. Look for Form P87 on the HMRC website.

Hammyman

You can only claim mileage to and from a TEMPORARY place of work or if you don't have a fixed place of work, such as a home carer going to several clients. Once it has been established that the place of work will last more than 24 months, it is no longer classed as a temporary place of work and any allowances paid for travel are taxable as income at the normal rate. You have been told it is a permanent move, or going to last at least 3 years therefore it is your permanent place of work, the travel to it is classed as ordinary commuting and you are NOT entitled to claim mileage allowance tax free at HMRC rates.

http://www.hmrc.gov.uk/manuals/eimanual/EIM32080.htm