Claiming mileage expenses from the Government

Ben.Quo

Hi

I have my own car which is not supplied by my employer. In my employment I currently earn 30p per mile back in fuel expenses. However, I have heard it on the grapevine that I can claim 50p from my mileage in fuel expenses. So the 30p would be made up by my employer as usual and the 20p difference would be made up by the government.

I have a few questions regarding this:

1. Is this rubbish or is it possible?
2. Is it easy to do?
3. What do I have to fill in or do to earn this difference back in expenses?

Your help is appreciated, thanks!

Ben

Savvy_Sue

You don't get the difference, you get the tax on the difference. Also the rate up to which you can claim is normally 45p per mile. I think you need your P11D from your employer.

anamenottaken

Savvy_Sue wrote: »

You don't get the difference, you get the tax on the difference. Also the rate up to which you can claim is normally 45p per mile. I think you need your P11D from your employer.

HMRC rate of 45p is for the first 10,000 of business miles: it's 25p beyond that.

Think you need a form P87 to claim (it's for business expenses generally, not just business mileage).

stu14t

I have a similar query to the one above. I will surrender my company car on the 1st of April and will start using my own vehicle for my business mileage. My company only pays the business mileage rates advised by HMRC for company cars, which I think is about 15p a mile for my car. How quickly can I claim the shortfall between that and the 45p rate on a P87 or do I have to wait to the end of the tax year?

withabix

You don't claim the shortfall. You claim the TAX on the shortfall - ie 20% for most people. (45p - 15p)* 0.2 = 6p per mile. Not 30p per mile.

You can ask HMRC to apply the MAR to you tax code, if you can demonstrate that a certain number of business miles are likely. More will result in a rebate the following year, less will result in a tax bill.

You will often end up on Self Assessment.

Business miles DO NOT include travel to your normal place of work (eg your office where your desk is), for tax purposes.

anamenottaken

stu14t wrote: »

I have a similar query to the one above. I will surrender my company car on the 1st of April and will start using my own vehicle for my business mileage. My company only pays the business mileage rates advised by HMRC for company cars, which I think is about 15p a mile for my car. How quickly can I claim the shortfall between that and the 45p rate on a P87 or do I have to wait to the end of the tax year?

When you had a company car, that made sense.
Now you won't have a company car, are you sure they will still be paying just 15p/mile?

stu14t

Withabix - Thanks for the reply. I have a record of business millage based on last year. I expect this year to be similar or more. I have to contact HMRC to inform them when I surrender my company car. Can I ask them to apply MAR from that point on?

I am already completing a tax return as I develop and sell specialist software and this provides another income. However, I can see how quickly I will end up full self assessment

anamenottaken - Yes, I double checked with our finance guy's to make sure this is correct. When I said my own vehicle I will in fact be taking the cash equivilent