Mileage Allowance Relief for part year

Beancounter

I opted out of my company car last August and got an allowance so am eligable to claim relief on the mileage covered for business in my own car. I left my job at the end of February. I presume this won't cause any complications when I send my P87 off to HMRC?

I have just downloaded the claim form for 2006-2007 and question 1 asks for employer etc. Is this the employer that I was with at the time I am going to put on the form or my present employer? ( I have no car or car allowance now so wouldn't be claiming any relief on this job)

RabbitMad

If you are employeed you are eligible to claim relief for upto 40p per business mile travelled in a year in your own car. Its 40p for the 1st 10,000 miles and 25p thereafter.

If you received expenses from your employer for this mileage you have to reduce your claim by that amount.

E.G. My company pays me 10p a mile when I drive on business minus my normal round distance mileage to work (10 miles) if I Drive straight from home. If my business mileage is 100 miles and I haven't been to my office that day (so that I have to deduct 10 miles) I claim 30p for 90 miles and 40p a mile for 10 miles on my tax return.

On your tax return you put the employer under whom you incured this mileage.

If you are doing business mileage for your new employer but not getting 40p per mile expenses then you can claim this too.

Beancounter

Can someone confirm which tax office I would need to send the claim form to, the office that dealt with my taxes with the company I previously worked for or my new employers tax office? Thanks.

RabbitMad

just request a self assesment form with an extra employment section, though don't expect them to get it correct. My missus swapped jobs one year and had mileage from both. Dozy lot only took one lot into account and held onto £800 for half the year until I got it sorted out.

Murdina

In theory you can ring up and ask for a form or just write a letter.You do not have to be within self assessment to claim employment expenses and HMRC would probably prefer you were not either . Alos not nec a good idea to invite yourself to join the self assessment system when you are just a PAYE taxpayer with expenses since it lays you open to penalties, surcharges and formal enquiries which on the whole are best done without. Basically if just PAYE up to HMRC to get it right (with your input) but under SA it is all down to you - which is why so many people pay for accountants.