Claiming back the tax I paid on mileage allowance

MrsMigginsPies

Hi All.

Apologies if this has already been answered before but I couldn't find an answer for my particular situation.

I am a nurse and I have a permanent part time job.

I have recently joined an agency to bump up my pay packet to help pay for Xmas etc. My agency job means I can be travelling to any hospital/home/care environment anywhere in the country should I choose to accept the work.

I use my own car and get paid 25p per mile for this which covers me for going to and from the place where I will be working. My problem (if it is one) is that I have noticed that they lump all the mileage payments in with my Gross Pay and then I get taxed at basic rate and pay NI on the lot! :mad:

My question is can I claim the tax back on my mileage allowance?

I have also noticed they did the same with the refund for the Occupational Health fees I had to pay. On top of this I had to pay for my own CRB clearance and a uniform with the agency's logo on it. Can I claim any of that back?

If so, how do I go about claiming these expenses without the cost of having to pay an accountant?

Thanks in advance

Mrs M

Chris_P_2

yes you can - you can claim back at 45p per mile for the first 10000 per year. Just write a letter to HMRC with proof.

withabix

Chris_P wrote: »

yes you can - you can claim back at 45p per mile for the first 10000 per year

No you can't.

You can claim the TAX back on the difference between that and the mileage rate you are reimbursed at. ie 20% of the difference if you are a basic rate taxpayer.

HOWEVER, the main issue here is that EXPENSES payments are being taxed.

They shouldn't be and this is for the employer to sort out initially. They should be paying these items gross to start with.

Dazed_and_confused

Surely the issue is that this appears to be normal commuting and therefore nothing is claimable - the fact you are getting 25p mile seems generous and this would be taxable income - why do you think you could claim the tax back?

John_Pierpoint

You are being treated as though you were self employed but you are in a master and servant relationship for a master who is not prepared to meet your expenses in doing the job.

withabix

Dazed_and_confused wrote: »

Surely the issue is that this appears to be normal commuting and therefore nothing is claimable - the fact you are getting 25p mile seems generous and this would be taxable income - why do you think you could claim the tax back?

No, this:

MrsMigginsPies wrote: »

My agency job means I can be travelling to any hospital/home/care environment anywhere in the country should I choose to accept the work.

satisfies HMRC rules for a non-fixed work location and therefore entitles MrsMigginsPies to tax relief on the journey.

She must however upgrade her car insurance to include Business Use.

antrobus

MrsMigginsPies wrote: »

..I have recently joined an agency to bump up my pay packet to help pay for Xmas etc. My agency job means I can be travelling to any hospital/home/care environment anywhere in the country should I choose to accept the work....

My understanding has been that it depends on how the agency have structured their contract with you. If it is what is known as an 'overarching' contract of employement i.e. you are employed under a single contract of employment which covers a series of separate assignments, then the cost of travel to each separate location can be a tax allowable expense. If however you are simply working on a succession of unconnected short term assignments each of whom has a different permanent place of work, then no.

I would presume (as dangerous as that might be) that the agency knows what it is doing, and that is putting your mileage allowance through PAYE for a reason.

00ec25

antrobus wrote: »

My understanding has been that it depends on how the agency have structured their contract with you. If it is what is known as an 'overarching' contract of employement i.e. you are employed under a single contract of employment which covers a series of separate assignments, then the cost of travel to each separate location can be a tax allowable expense. If however you are simply working on a succession of unconnected short term assignments each of whom has a different permanent place of work, then no.

I would presume (as dangerous as that might be) that the agency knows what it is doing, and that is putting your mileage allowance through PAYE for a reason.

agreed
OP depending on your status as outlined by antrobus it may in fact be correct that you have to pay tax on the 25ppm, not that you can reclaim tax !

you need to confirm wuth the agency what location they regard as being your permanement place of employment and whether they have an overarching contract on place,

MrsMigginsPies

Hmmmm.......... Some say I can some say I can't. Ever so slightly confused now! Think my first port of call is with the agency and find out what their reasons are. My second is to ring the tax office and see what they say.

To answer just a couple of points though:

Dazed and Confused - The reason I think I might be able to claim tax back is because my mother said my sister apparently does it and she also works for an agency. The problem with listening to my mother is she always gets the wrong end of the stick then passes her version off as gospel! Lol! I take what she says with a pinch of salt for the most part but this one did actually get me thinking and once a seed is sown..............! As generous as the allowance may seem, I fail to see it as income when I've had to pay for the fuel and running costs in the first place. They are surely merely refunding me for what I have paid out?

Withabix - Why do you say I need to upgrade my car insurance to Business class? I'm only using it to get me to and from a place of work which comes under commuting on my insurance. I don't actually use the car for my job as once I'm there I'm static.

Antrobus & 00ec25 - I will look into this overarching contract (whatever that is) with the agency when I speak to them and see. I don't automatically presume the agency know what they're doing though. Had to rag them for missed payments when I first started with them a few weeks ago. From frequent problems with pay in my permanent job and elsewhere I have learnt to double check my pay packets and make sure they tally up with what I've actually done otherwise I would end up working for free at times if I just accepted it quietly.

But thanks for all your answers anyway. Just didn't want to go roaring in there making demands only to find out I've made a big tit of myself!

Mrs M

00ec25

MrsMigginsPies wrote: »

Withabix - Why do you say I need to upgrade my car insurance to Business class? I'm only using it to get me to and from a place of work which comes under commuting on my insurance. I don't actually use the car for my job as once I'm there I'm static.

that is the key issue
commuting covers you for travel to ONE place of employment, it does not cover you for travel to multiple locations on different dates unless you have specifcially notified (best done in writing) the insurance company that that is the nature of your work pattern

in your case I realise the concept of an overarching contract is complex but it is vital you establish your status because the rules on claiming mileage tax relief from HMRC are very complex where you have multiple work places.

Yes they may well pay out if you claim, but if it is then challenged later on you may have to repay it all - you have been warned...

MrsMigginsPies wrote: »

I have also noticed they did the same with the refund for the Occupational Health fees I had to pay. On top of this I had to pay for my own CRB clearance and a uniform with the agency's logo on it. Can I claim any of that back?
Mrs M

uniform - you write a letter to the tax office shown on your payslip
see HMRC guidance - relief acn be claimed for only the parts of the unifrom with an logo on it
http://www.hmrc.gov.uk/manuals/eimanual/EIM32475.htm


OH and CRB - don't know - ask HMRC

sgtbush

ive just done my mileage expenses

your allowed up to 45p/mile from employer
you get 25p/mile directly as a tax free payment
you claim the other 20p/mile from tax man
up to 10,000 miles, then it drops to 25p/mile

fill in a form P87 if the total you have paid out is less than£ 2,500

if it is more you will have to self assess

note that you only get back 20% of the outstanding 20p/mile
or 4p per mile in real money terms for you

on the business insurance,
if you are travelling to different peoples homes to care for them etc then u need business insurance