Business miles - tax relief

leighv

I have done just over 11k miles this year on business. I have filled in p87 (I think that was the form) - and the total is nearly 3k (I only get 13 per mile). I am in the higher tax bracket.

So the question is - what do I get back actually? I am guessing not
40p-13p*10,000miles + the remainder at the lower amount. Do I get a cheque or ?

Thanks.

ctm_2

You get relief on the difference between what you were paid and theHMRC Approved Mileage Allowance Payment rates, which are currently 40p for the first 10,000 miles, and 25p for miles after that. They don't give you the difference, just relief on that amount.

So, on the first 10,000 you will get relief on 27p per mile, and on the next 1000 miles relief on 12p.

So, the amount you will get back is:
£0.27 * 10,000 = £2700.00
£0.12 * 1,000 = £120.00

So you will get relief on £2820. Assuming you are a higher rate taxpayer by at least that amount you will get back £2820 * 40% = £1128.

donnalou

As you're claiming over £2500 A P87 is no good for you. You'll have to fill in a self assessment.

Donna

leighv

So my next questions are:

Where do I send this form?
Where does it state that over xxxx I have to fill out a self assessment?

Thanks in advance.

paulus

I thought the P87 still worked, but SA applied the following year

http://www.hmrc.gov.uk/manuals/pommanual/pompay/pompay11103.htm