P87 - business mileage claim

sidsnot617

Hi,
After some help completing a P87 form for business mileage. I receive a monthly car allowance that is taxed and a company fuel card for all fuel. Each month I complete an expenses form and my company deducts my private mileage from my wages.


I have been told I can claim tax relieve on the first 10,000 miles @ 45p and thereafter 25p.


The form has a box "total mileage allowance payments". Can someone explain how I work this payment out?


Kind Regards

anselld

sidsnot617 wrote: »

Hi,
After some help completing a P87 form for business mileage. I receive a monthly car allowance that is taxed and a company fuel card for all fuel. Each month I complete an expenses form and my company deducts my private mileage from my wages.


I have been told I can claim tax relieve on the first 10,000 miles @ 45p and thereafter 25p.


The form has a box "total mileage allowance payments". Can someone explain how I work this payment out?


Kind Regards

Add up all business mileage and multiply by 45/25 as appropriate.
Deduct all business fuel spend.
Claim remainder as tax relief.

sidsnot617

Thanks for your reply.


What would be my "business fuel" spend. I don't pay anything towards fuel. I have a company fuel card that pays for ALL fuel and I pay back Private mileage via expenses each month.

pcgtron

Then you are not paying for business mileage so can't get tax relief on it.

sidsnot617

Hi, I thought the tax relief was for using your own car for business mileage?

anselld

sidsnot617 wrote: »

Thanks for your reply.


What would be my "business fuel" spend. I don't pay anything towards fuel. I have a company fuel card that pays for ALL fuel and I pay back Private mileage via expenses each month.

Whatever the spend is on the fuel card for business mileage which is paid by the company. You can only claim the difference between 45p per mile less any contribution by the company (which is the fuel in his case).

sidsnot617

Thanks, just to confirm...
If I've done say 15000 miles in the year and say the company paid a total of £4000 that year on the total fuel card bill and I paid back £500 for private mileage. I would work it out by:-
10,000 x 45 = £4500
5000 x 25 = £1250
Total = £5750


Minus allowance payment (5750 - 3500) = 2250


Therefore I could get mileage allowance relief on £2250


Is this correct?

jamesml

You should work out how many miles you did privately.

15,000 miles in total, less 1,000 miles privately (lets say).

10,000 miles * 0.45 = £4,500
4,000 miles * 0.25 = £1,000
Total = £5,500

minus payments made by your employer (5,500 - 4,000) = £1,500 which you could get tax relief on, depending on what your actual private mileage is. Don't forget that what your work class as private mileage is and what HMRC see as private mileage is might be different - it could depend. If your contract of employment states your place of work is your company office in Hull, and that is where you drive most days, then this journey is not a business journey although its likely that your employer won't have made you pay this back as private mileage.

sidsnot617

Sorry if I'm being dumb....
I don't understand why mileage i.e. 4000 is being deducted from pounds i.e. £5500

notanewuser

sidsnot617 wrote: »

Sorry if I'm being dumb....
I don't understand why mileage i.e. 4000 is being deducted from pounds i.e. £5500

It's the £4000 your employer paid for fuel.

sidsnot617

I see now, thanks.
I don't deduct what I paid back to the company; it's the whole fuel card bill for the year :-)