Mileage Allowance relief & Tax credits

Stroller133

Hi

I've had a letter as my renewal figure for 15/16 income is lower than RTI from P60. The letter suggests the only evidence allowed is wages slips, bank statements and letters from registered charity for gift aid.
This is fine for the gift aid element, but some of the difference is for mileage reimbursed below the allowed amounts. By definition this is not on my payslips, I have my own monthly excel sheet with details on and an single excel list with every journey and amount reimbursed from my employer. Should these be sufficient?

Is the following still true:
"mileage allowance relief for an employee who uses his/her own car on business but whose employer reimburses less than an approved amount (ITEPA 2003, section 231);"

Caz3121

I am not sure if 2 things are being confused here
If you receive, for example 20p per mile from your employer for business miles these are not included on your pay slip and is not taxable income. You can also, assuming you are a taxpayer, claim tax relief on the difference of the HMRC rates and your employer payment via a P87 form
Are you saying the mileage payments are shown on your P60 as taxable but not your payslips or have you deducted a figure from your income?

Darksparkle

https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm04228

Tolly_T

Do you have evidence of the total amount reimbursed by your employer for mileage and the rate per mile that they pay? I think if you have this and it matches the amount on your spreadsheet this should be acceptable.

There are more acceptable deductions for tax credits than can be proved with the list of evidence that they claim to be allowed. This is a problem with the way tax credits use the P60 figure as an income figure but ask you to provide an income figure which allows various deductions. It's hardly surprising they don't always match and then it takes time to investigate and causes stress to the claimant. It would be far better if they had two boxes, an income from employment figure and a deductions figure so they could see how you came to your final figure.

Stroller133

Caz3121 wrote: »

I am not sure if 2 things are being confused here
If you receive, for example 20p per mile from your employer for business miles these are not included on your pay slip and is not taxable income. You can also, assuming you are a taxpayer, claim tax relief on the difference of the HMRC rates and your employer payment via a P87 form
Are you saying the mileage payments are shown on your P60 as taxable but not your payslips or have you deducted a figure from your income?

I receive 10p /mile, I've successfully submitted my Self Assessment to claim the tax relief, but I believe I can also deduct the difference ie 35p/mile from my P60 value. Can't use P87 as a couple of years ago the expenses I claimed relief on was greater than £2500 and it seem once on SA you can't come off - doesnt matter now as this current year the expenses will be c£3500 anyway.

zagfles

The spreadsheet is useful to show them how it's worked out so send that, but they'll also probably want evidence as you could put whatever you want in a spreadsheet - so send them a copy of your expenses claims if you have them - or if you have a modern expenses system it might have an annual tax summary which you can print. Or else get a letter off your employer confirming your mileage for the year and the rate you were paid.

Stroller133

Darksparkle wrote: »

https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm04228

I'm a bit confused as this mentions payments and benefits in kind. What I'm expecting (or hoping) to deduct is what I was NOT paid.

My business milage last year was 11438, so can consider my expense incurred to be £4859.50. If thatS what my employer repaid me the whole expense would have no impact at all, on my employed income, this much I'm clear on. However if I was repaid £5000, I would need to add £140.50 to my P60 value if it wasnt already included. In my case I was repaid £3750.90, technically underpaid by £1108.60. I subtracted this amount off my P60 value and my grossed up Gift aid.

Stroller133

zagfles wrote: »

The spreadsheet is useful to show them how it's worked out so send that, but they'll also probably want evidence as you could put whatever you want in a spreadsheet - so send them a copy of your expenses claims if you have them - or if you have a modern expenses system it might have an annual tax summary which you can print. Or else get a letter off your employer confirming your mileage for the year and the rate you were paid.

I have a single page excel sheet the expenses team sent me listing each individual claimed journey, start and end points and other destinations if multiple locations in one day, miles claimed and amount paid with totals at the bottom I can submit banks statements showing the payments - there is slight differences in amounts due to toll road claims which are fully repaid, which I can also provide dates, receipts and amount for these to reconcile the differences. I can also send them receipts for fuel but that only covers 10/11p of each mile.

Stroller133

I'm gathering the evidence and I've discovered a further £102 I can deduct. £2 is due to me rounding down my gift aid & expenses where I should have rounded up and secondly I took 2 weeks Paternity leave but my monthly payslip only listed 1 week, so I only deducted £100. however my P60 does show 2 weeks.

I'm happy if they want to use my original figure once they accept the evidenice as they were my mistake and my loss, but as the claim is not finalised wondered if I could make these corrections

Stroller133

I sent my evidence, a letter from the charity, my eP60, expenses spreadsheets and expenses invoices and my self assessment calculation. I posted it signed for 1st class on 29th July and it appears to have been delivered on Wed 3rd August.
As their letter said they would assume my P60 inccome is correct if I hadn't provided evidence by 13th August I called HMRC to confirm they had receipt of my evidence, I wasn't expecting any update on my renewal just reassurance my documents had arrived. The advisor said nothing on the system suggests they have it, and it may take 10 weeks to process. I'm not are what to do next , They may have my documents and process as expected, however if they send a final notification using just P60 can I appeal at that stage and resubmit the documents and proof of postage/delivery or should I assume they are missing and resend them today/tomorrow so they arrive before the 13th August?