which section to fill out on p87?

stevewithers

Greetings everybody:)

I have a monthly car allowance but pay for fuel to visit clients. My company pays around 13p per mile.
I understand that I can claim back the vat on the difference between what my company pays per mile and what the government allows (40p?)
I have several years to claim but am unsure what part of the p87 I need to fill in. can anyone help on this?
Also do I need to supply mileage logs and my p60?
Lastly how long will this normally take to process?

Thanks in advance

Steve

CLAPTON

no
vat has nothing to do with this

you can offset the tax if your company pays less than the HMRC rates

which bits of the form are your struggling with?

anselld

Parts 1, 2 and 6, and as above you are claiming income tax relief not VAT.
You can go back about 5 years I think and yes, the HMRC will probably want some records of mileage and reasons to confirm it is business related. You may be able to get confirmation from employer? Current year should be fairly quick, backdated will take longer, but stick at it!

stevewithers

Sorry guys, tax relief!
I have all my records going back 5 years in a spreadsheet. So that is a start. Also I get a monthly allowance for my car. Are you sure that I need to fill in section 2 as this is for personal cars?
Do I need to submit my p60?

Thanks

Steve

anselld

stevewithers wrote: »

Sorry guys, tax relief!
I have all my records going back 5 years in a spreadsheet. So that is a start. Also I get a monthly allowance for my car. Are you sure that I need to fill in section 2 as this is for personal cars?
Do I need to submit my p60?

Thanks

Steve

You get an allowance. The allowance is taxed. You use the allowance to buy a car. Hence it is a private car and you are claiming back the tax on the element you have used it for business.

If you are saying it is a Company car, ie the company pays for everything and you get taxed through car benefit then I don't think you can claim anyway.

The key is who actually owns the car on the reg docs?

Don't need to submit P60 unless they specifically ask for it.

stevewithers

all makes sense now

thanks anselld

stevewithers

One last thing, can I claim on the tax relief for the mileage when I was using a car owned by the company?
I did not get an allowance then and I paid for all fuel claiming back 11-12p per mile


Thanks

Steve

stevewithers

Anybody?

One last thing, can I claim on the tax relief for the mileage when I was using a car owned by the company?
I did not get an allowance then and I paid for all fuel claiming back 11-12p per mile


Thanks

Steve

jennifernil

I would say "no", the higher rate of mileage is only applicable to private cars.

The higher rate is to cover extra wear and tear, servicing, insurance, you did not incur these costs when using a car owned by the company.

If the amount you were paid did not cover the cost of the fuel, you should take that up with the company.

Presumably this was a "pool" car? If it was your own company car then you have a benefit that you would have been taxed on.

Some info here.....

What about pool cars?

There is no tax liability for genuine pool cars kept at the business premises for the business use of any employees. There are conditions that HM Revenue and Customs (HMRC) enforces strictly to prevent this concession being abused. For example, any private use must be purely incidental to the business journey.
Is there a taxable benefit for fuel?
Yes, where fuel is provided for private mileage. The car fuel benefit is calculated by applying the same emissions–based percentage as the car benefit to the multiplier, which for 2008/09 is £16,900. The Chancellor has said the multiplier will increase for 2009/10 and 2010/11 at least in line with the Retail Prices Index. For 2008/09 the fuel benefit charge could be as much as £5,915 and it may be beneficial for the employee to buy their own fuel.
If fuel stops being supplied part way through the year, the benefit can be apportioned on a time basis, unless free fuel is resumed later in the same tax year
It can be difficult to prove that fuel has only been used for a business journey. In order to avoid a taxable fuel benefit, reimbursement for business miles at an appropriate rate is recommended. HMRC publish advisory rates from time to time.