Community carer. Help with tax credits and mileage.

charl91r

Hi i own my own care company and have a few girls asking me questions. I have searched the itnernet but cant find anything of any use so was hoping that some one could help me.

The girls travel to peoples homes to look after them and for most of the girls it is a simple P87 form with a rebate or tax code change once they send this off.

However some of the girls claim tax credits because of having children. Im lead to believe that if they have tax credits they can't claim their mileage back from HMRC they can only recieve the mielage that i pay them. Some of the girls seem to think different and that they can claim back their mileage from HMRC and change their income on the tax credit form.

Just wondered if anyone on here knew anything before i tell them all to ring up HMRC

Thank you in advance

zagfles

charl91r wrote: »

Hi i own my own care company and have a few girls asking me questions. I have searched the itnernet but cant find anything of any use so was hoping that some one could help me.

The girls travel to peoples homes to look after them and for most of the girls it is a simple P87 form with a rebate or tax code change once they send this off.

However some of the girls claim tax credits because of having children. Im lead to believe that if they have tax credits they can't claim their mileage back from HMRC they can only recieve the mielage that i pay them. Some of the girls seem to think different and that they can claim back their mileage from HMRC and change their income on the tax credit form.

Just wondered if anyone on here knew anything before i tell them all to ring up HMRC

Thank you in advance

Yes they can deduct mileage allowance from their income they declare to tax credits in the same way as for income tax. See http://www.hmrc.gov.uk/manuals/tctmanual/TCTM04228.htm