Qustion about my SA Calculation

KesElk

Just filled out my Self Assessment in order to claim back mileage expenses,

Am I right in thinking I put the "Total Mileage allowance relief" amount (From the P87 form) in the "Business travel and subsistence expenses" box on the Self Assessment?

Just that when I've hit "View your calculation" It only shows I am owed the £24.00 tax I paid on my earnings.

Is the mileage calculated after the form is submitted?

sweetietot

Is £24 the only tax you have paid? You will only receive tax relief on the mileage, so if your total tax paid was £24, the refund will not be more than this

KesElk

The £24.00 is the tax that was deducted from my wages, according to my P60.

The figure I'm putting into the "Business travel and subsistence expenses" box is £4052.00

My question is, why is this not being taken into consideration in the "Final Calculation"?

sweetietot

The expenses figure should mean that your employment income is reduced by that amount on the calculation screen, so if your P60 shows pay £7752, the final calculation would show employment income £3700 (7752 - 4052).

System

The expenses reduce your taxable earnings. It's not cash that you get back. If you've only paid £24 tax, your refund will only be £24.

When you look at the taxable earnings in the calculation, do they still match the P60?

KesElk

I should say that I had originally sent a "P87 Tax relief for expenses of employment" form, it was returned stating I have to fill out a Self Assessment as the amount I have claimed was above £2,500.

Am I definitely supposed to put the figure from "Total Mileage allowance relief" (P87) into the "Business travel and subsistence expenses"(Self Assessment)?
It seems to be the only logical place for it.

In the calculation I'm getting:
Pay from employments
minus allowable expenses...

I'm confused as to what this actually accomplishes, I have been told by my employer that I am able to claim back a much greater amount than the £24 shown here.

ceiberman wrote: »

The expenses reduce your taxable earnings. It's not cash that you get back.

What? I have been told for months that I am entitled to a rebate of around £800, which funnily enough is the figure that comes up when I enter the "Maximum Tax free amount" from the P87.
It's not just me that's been told this it's almost every other driver in the store.

System

Sounds like someone has been giving bad or incomplete advice. The situation is as sweetietot describes. The purpose of the tax relief is to ensure you don't pay tax on the part of your earnings you had to spend on 'allowable' expenses, incurred when carrying out your job.

Depending on the level of your earning (and your normal tax-free allowance) the expenses could reduce your bill to nil. In which case you get back the tax you've paid. You wouldn't get back more than you paid in the first place.

KesElk

Well I'm gutted to say the least and I'll be having serious words with the man who gave me this information, thank you for your help.

System

Out of interest (if you don't mind me asking). Have I understood it right that you had £4K of motoring expenses on an income of around £7.5K or did you already receive tax relief for your expenses through your PAYE code throughout the year - if so that might explain what happened.