Tax Return - but Employed???

Lindylou54

I am employed on a full time basis as a professional with a local authority. I need to have a car available for work, but at present just get a mileage allowance as they have just done away with the lump sum system. I have been discussing this with colleagues recently and it has been suggested that it may be more beneficial to have an Income Tax Return completed by an accountant on an annual basis in order to be able to claim for items which we are not now getting allowances for.

Anybody have any advice. Thanks

Timmne

You don't need an accountant if it's an income tax return - although I am one, so I shouldn't be telling too many people this!

Not sure why you'd need to do one anyway - mileage (as claimed in expenses) is 'tax free', as in it's a contribution towards your running costs.

If it's just employment income you have you don't need to do one.

mor7s_2

this is an extract from my post on another link about cliaming expenses for travel etc as an employee and may help.

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Claiming tax relief for expenses incurred as an employee for business travel and subistence can be done using form P87. Link below will take you to a pdf version from HMRC's website.

http://www.hmrc.gov.uk/forms/p87.pdf

The form is year specific though and the 2006-07 version doesn't seem to be available yet.

You don't need to use the forms though and can claim with a simple letter and calculation.

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In short a P87 should suffice not a full on self assessment return. If the claim is large HMRC may ask for a return in future years to see what else is going on though!