Claiming Mileage for Work

Passportboy

Hello All

I hope you can help me as I am sure I can claim some money back from the government - but lets be honest, those guys at HMRC dont make it easy..!

I wont go into a long and winding post with too much detail, as they are a nightmare to read..!

Basically I get paid 13p per mile by work, I beleive I can claim more back - is this true.

I have found the P87 form, is this what I need to use?

Also - if i take the 45p allowance, deduct my employer payment of 13p (32p per mile for the first 10,000) and multiply this by 10,000 for the first part - do I get that paid to me, or is it 20% of that..?

Also - does anyone know when this form has to be submitted by..?

I hope someone out there knows better than me..!

Dan

GRM

Passportboy wrote: »

I have found the P87 form, is this what I need to use?

Yes.

Also - if i take the 45p allowance, deduct my employer payment of 13p (32p per mile for the first 10,000) and multiply this by 10,000 for the first part - do I get that paid to me, or is it 20% of that..?

20%.

HappyMJ

You only get 20% back. You don't get the NI back....that's lost.

Is the car your car? Personally I would not allow the use of my car for business use unless the company paid HMRC rates. It costs a lot more than just fuel to run a car.

You have several years to backdate a claim and get your tax back. If you are compelled to fill in a tax return each year and fail to do so by the end of January you could receive a penalty.

notanewuser

Passportboy wrote: »

Hello All

I hope you can help me as I am sure I can claim some money back from the government - but lets be honest, those guys at HMRC dont make it easy..!

I wont go into a long and winding post with too much detail, as they are a nightmare to read..!

Basically I get paid 13p per mile by work, I beleive I can claim more back - is this true.

I have found the P87 form, is this what I need to use?

Also - if i take the 45p allowance, deduct my employer payment of 13p (32p per mile for the first 10,000) and multiply this by 10,000 for the first part - do I get that paid to me, or is it 20% of that..?

Also - does anyone know when this form has to be submitted by..?

I hope someone out there knows better than me..!

Dan

Yes, that's the right form.

Yes, you get 20% of the difference between 45p and 13p (for the 2012-13 financial year - it was 40p per mile before that).

No, it doesn't matter when you send the form in.

Passportboy

Wow - thanks all..! I have done almost 30,000 miles this year so I should be lookign at about £1000 back. I think I will have to put this straight back ito my car for a bloody good service and then new tires!

This is the first year that I have had to use my car - so I have not further rebaites. I also do not have to do my own self assessement, or I dont think I do..!

With regards to your point HappyMJ about using my car - I would love to say, pay me 45p - however they said, its 13p a mile, take it or leave it... If I leave it, i would also lose my job... That is worth a lot more to me than the cost of petrol, tax and servicing!

Passportboy

Ow - as daft as it sounds, do you know if this will be paid in a lump sum by cheque, or will it be taken off my wages each month..? And also - will I pay tox on this (I would say no, but I am taxed on everything else so wouldnt suprise me!)

HappyMJ

Passportboy wrote: »

Wow - thanks all..! I have done almost 30,000 miles this year so I should be lookign at about £1000 back. I think I will have to put this straight back ito my car for a bloody good service and then new tires!

This is the first year that I have had to use my car - so I have not further rebaites. I also do not have to do my own self assessement, or I dont think I do..!

With regards to your point HappyMJ about using my car - I would love to say, pay me 45p - however they said, its 13p a mile, take it or leave it... If I leave it, i would also lose my job... That is worth a lot more to me than the cost of petrol, tax and servicing!

Passportboy wrote: »

Ow - as daft as it sounds, do you know if this will be paid in a lump sum by cheque, or will it be taken off my wages each month..? And also - will I pay tox on this (I would say no, but I am taxed on everything else so wouldnt suprise me!)

Lump sum by cheque or direct bank credit if you give them your bank details.

You don't pay tax on it...it's a refund of tax.

notanewuser

Passportboy wrote: »

Ow - as daft as it sounds, do you know if this will be paid in a lump sum by cheque, or will it be taken off my wages each month..? And also - will I pay tox on this (I would say no, but I am taxed on everything else so wouldnt suprise me!)

You're claiming the tax back, so no, it won't be taxed.

It's likely you'll get a cheque and a raised tax code for next year (to cover it assuming all stays the same).

spacey2012

Any good accountant will tell you if you think you can run a car for less than £1 a mile, you are mad.
What happens when it drops to bits ?
What happens when the car you bought say for £5k is knackered and you need £5k for another reliable work horse.
Can you see where you are subsidising this employer from the wage they pay you ?

HappyMJ

spacey2012 wrote: »

Any good accountant will tell you if you think you can run a car for less than £1 a mile, you are mad.
What happens when it drops to bits ?
What happens when the car you bought say for £5k is knackered and you need £5k for another reliable work horse.
Can you see where you are subsidising this employer from the wage they pay you ?

Maybe OP is paid £5,000 a year more than the another person doing a similar job. As I said earlier I would never subsidize an employer using my own car unless I at least got the full HMRC rates...it would form part of my salary negotiation before taking a job on. If they only paid 13p/mile then I would insist they provide the car and I pay them 13p/mile for any personal mileage on the car.

spacey2012

The HMRC rates are based on the days when fuel was £2.80 a gallon, it's £6.20 now.