Tax Relief-Fuel

kingbuxton

Anyone ever claimed for this?

My Partner gets 20p a mile for her job as a Home Carer. She has been doing it for a good few months now and has clocked up 1270 miles so far.

Apparently she can claim more, although I found the website (HMRC) about as clear as mud. I know I need to write to them but thats about it.

mysterywoman10

As far as I understand it you don't pay tax on re-claimed fuel costs if it is under 35p per mile, if it is over this part of it is considered taxable and the employer has to complete a P11D to show what mileage costs they have reimbursed and taxed paid.

The only time you can claim fuel costs against tax is if you are self employed, so if you wife is a self employed carer then yes she can claim fuel costs as part of her self assessment.

EDIT info above is wrong please see post below.

Caz3121

If you go over to the "Cutting Tax" board, this is a frequent topic over there and there are a number of posts relating to reclaiming tax using P87

mysterywoman10

Thanks Caz my understanding seems to be wrong, different to what they told me at HMRC on rates but I am going back a few years. I didn't realise you could claim the difference back.

Need to look into OH's fuel claims.

p00hsticks

you may be beter off posting on the 'Cutting tax' board here http://forums.moneysavingexpert.com/forumdisplay.php?f=22
rather than this one which is for benefits and tax credits.


Off the top of my head, I think that providing she has been keeping the right records she should be entitleld to claim tax relief on the difference between what her employer pays her (20p per mile) and the approved HMRC mileage rate of 45p per mile.

NOTE that this is relief on the tax paid on the amount in question, not the sum itself - so if she is a basic rate tax payer then I think that for the milage done so far she would get a tax rebate of

(45p - 20p) x 1270 x 20% = £63.50

http://www.hmrc.gov.uk/incometax/relief-mileage.htm#1

kingbuxton

How do I get a mod to move this over.