MoD Mileage Allowance

pinkywu

Hi,

I believe I can claim some money back and am hoping someone can advise. I've done some googling and keep coming up with two answers.

I'll keep it simple by rounding up or down.

My last appointment was less then 2 years and therefore temporary in the eyes of HMRC. During the second year I was required to travel 84 miles per day, 5 days a week. We get 8 weeks leave so that leaves 44 weeks. That means 18,480 miles in a year. The first year is more complicated so I'll just use year 2.

The MoD pays 24p per mile and I believe the HMRC allow 45p per mile up to 10k and 25p per mile after that. 10k x 45p = £4500 and 8480 x 25p = £2121 total £6621 vs MoD payments totaling £4435 which is about right from my pay statements.

My question is can I claim back the difference ie £6621 - £4435 = £2186 or should that sum be deducted from my pre tax salary and therefore I have overpaid £2186 worth of tax? If it's the tax option do the MoD payments effect what I can claim ie can I claim £6621 worth of tax back or as above?

From googling I get both answers. It's either the difference or the tax.

Any help greatly appreciated.

Ta

Caz3121

If you go to the sticky (first post above yours) and click Mileage it will show you all the related threads
basically you will be due a refund of the tax you paid on the £2186 so 20% of it back if a 20% taxpayer

Pennywise

It's tax relief on the difference, so if your marginal tax rate is 20%, you can claim back 20% of the difference directly from HMRC.

jimmo

pinkywu wrote: »

My last appointment was less then 2 years and therefore temporary in the eyes of HMRC.

Its really not as simple as that. If your last appointment was originally intended to last more than 24 months your last workplace was not a temporary workplace at the time you first went there.
http://www.hmrc.gov.uk/manuals/eimanual/EIM32080.htm
It would then become arguable whether it became a temporary workplace when both you and your employer first became aware that the posting was not going to last for 24 months. That could easily be the date you handed in, or received, your notice. If that were the case your claim could be limited to a couple of months rather than a couple of years.