Tax releif

BenD_3

I currently get paid £0.15 per mile from my employer
I have been told I can claim a % of anything up2 £0.40
(Less the £0.15 Paid by the employer)
Just got a few questions:

1. Where do I get the form, can I do it online?

2. How do I prove my milage, I give a receipt to my employer

3. Wot % of the £0.25 do I see?

4. How long would I b lukin at to get the money back

Also I have been paid for petrol that I have put in2 the car
As in I put £20.00 in and my company give me £20.00 back
Wud I be able to claim anything on this back?


Any help appreciated

Thanks

AP

The Inland Revenue Authorised Mileage Rate is 40p per mile for the 1st 10000 business miles in a tax year which runs from 06/04 to 05/04 and 25p per mile thereafter.

You can get tax relief on the difference if:
1. Your employer pays you less that this rate; and/or
2. Your employer pays you less than the actual business miles that you travel, e.g. if you undertake a business journey direct from home without calling at the office, most employer will require you to deduct the mileage from your home to the office but as far as the Inland Revenue is concerned, the business mileage is the full cost of the journey from home.

For example:

You travelled 20 miles for your business journey direct from home. The full cost of your journey is 20 miles at 40p per mile = £8.00

Your employer reimbursed you for 15 miles (say the distance between your home and your office is 5 miles) at 15p per mile = £2.25

You will then be able to claim tax relief on the difference, i.e. £8.00 - £2.25 = £5.75 from the Inland Revenue. Assuming you are a basic rate taxpayer, the relief amounts to £5.75 x 22% = £1.27.

This applies when you are using your own car as different rules apply if it is a company car.

After the end of each tax year, you fill in a form P87 which can be downloaded from:

http://www.hmrc.gov.uk/forms/p87.pdf

and send it to your local tax office together with your P60 from your employer.