Help with mileage claim-

Frosty873

Hi I'm really hoping someone can help as I am at my wits end with this!


I basically left a role three years ago, and when I started my new job I received a letter from HMRC to say that I hadn't paid enough tax and it was to do with a 'benefit in kind'. I used to work for my local NHS trust and basically I had claimed mileage, but never gone over the 10,000 miles a year allowance and I think it was something like 40p/45p that I claimed.


At the time I called HMRC as I didn't think that mileage claims were taxable but the person I spoke to at the time had said that was correct and if I'm honest, I didn't really understand and decided not to pursue it.


To cut a very long story short, there is a restriction on my tax free allowance as HMRC advised I owe tax on this 'benefit in kind' that I received. I had absolutely nothing except my basic wages and the mileage claim I submitted monthly. I have contacted HMRC again this week and they advised that the payroll team for the NHS trust will need to rectify the issue as they have been completing P11D forms. When I spoke to the company that deals with this, Equiniti, they gave some fabricated story of only completing expenses in to HMRC at the end of the financial year and that my claim was an additional benefit.


Can someone please explain if the first 10,000 is taxable or not? I have sent a complaint in to HMRC (by recorded delivery) asking them to look into this as I'm getting nowhere with Equiniti. I think on average I was claiming about £150 of mileage, so I was no where near travelling 10,000 miles a year (which I don't think employers have to disclose to HMRC?).


I would be really grateful if someone could explain, as the info I found on the gov.uk website didn't really answer my initial query- and everytime I call HMRC I get a different story


Thanks in advance

CLAPTON

a benefit in kind should be shown on your p11d forms -what do they show?

you can claim mileage based on the difference between 45 ppm and what your company pays you per mile (for the first 10,000) : what do the NHS pay?

TheCyclingProgrammer

Mileage is only tax free on business travel and certain travel between workplaces or to a temporary workplace. If you were paid mileage rates for ordinary commuting to a permanent place of work then this would be a taxable BIK and they were right to declare it on your P11D.

Frosty873

All the mileage claims were for business- as I had to travel for my job going to various clinics etc. I know at the time I was only claiming 45p per mile, although when I spoke to the company dealing with payroll/expenses for the trust the seem to think I would have been paid 58p- so the 13p difference would have been taxable. It still doesn't add up though as HMRC stated I had a shortfall of over a grand to make up on tax related to this benefit in kind. I've sent a recorded letter to HMRC explaining it all so fingers crossed I'll get a response to explain what's happened. Like I mentioned I've not claimed for anything else, had no other benefits or claimed travel outside of work etc.

CLAPTON

Frosty873 wrote: »

All the mileage claims were for business- as I had to travel for my job going to various clinics etc. I know at the time I was only claiming 45p per mile, although when I spoke to the company dealing with payroll/expenses for the trust the seem to think I would have been paid 58p- so the 13p difference would have been taxable. It still doesn't add up though as HMRC stated I had a shortfall of over a grand to make up on tax related to this benefit in kind. I've sent a recorded letter to HMRC explaining it all so fingers crossed I'll get a response to explain what's happened. Like I mentioned I've not claimed for anything else, had no other benefits or claimed travel outside of work etc.

surely you know what you were actually paid by the trust for mileage?

TheCyclingProgrammer

Frosty873 wrote: »

All the mileage claims were for business- as I had to travel for my job going to various clinics etc. I know at the time I was only claiming 45p per mile, although when I spoke to the company dealing with payroll/expenses for the trust the seem to think I would have been paid 58p- so the 13p difference would have been taxable. It still doesn't add up though as HMRC stated I had a shortfall of over a grand to make up on tax related to this benefit in kind. I've sent a recorded letter to HMRC explaining it all so fingers crossed I'll get a response to explain what's happened. Like I mentioned I've not claimed for anything else, had no other benefits or claimed travel outside of work etc.

So what does your P11D say. Did you get given one?

Caz3121

did you deduct the amount you were paid by your employer? If they paid you 13p and the HMRC rate was 45p you should have claimed tax relief on the 32p difference. If you claimed tax relief on 45p and received 13p then you would indeed have been overpaid and be due to pay some back

redpete

Caz3121 wrote: »

did you deduct the amount you were paid by your employer? If they paid you 13p and the HMRC rate was 45p you should have claimed tax relief on the 32p difference. If you claimed tax relief on 45p and received 13p then you would indeed have been overpaid and be due to pay some back

Read it again, the OP thinks that they got paid 13p more than the 45p allowable amount - so they would be taxed on this 13p a mile.

Caz3121

redpete wrote: »

Read it again, the OP thinks that they got paid 13p more than the 45p allowable amount - so they would be taxed on this 13p a mile.

agreed (think my last sentence is unclear)
I was asking whether it was possible that the difference between the HMRC rate was co-incidently the same amount paid my the employer and they had forgotten to deduct that from the HMRC claim meaning that the employer amount would indeed be excess and taxable

sheramber

Employers have to report any benefit paid to employees earrning over £8,500 pa regardless of the amount of mileage.

You should have been given a copy of the P11D submitted to HMRC.

That will tell you how much Equiniti have reported to HMRC.

If they have been completed incorrectly then they will have to advise HMRC of the correct figures.

So, again, what does it say on your P11D?

Without that information nobody can really help you.