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You Owe HMRC

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  • How on earth did you get £650 back for mileage when HMRC show £726 - tax relief would amount to £145.20. Is it a coincidence that your refund equalled the tax paid on the second job? Was this perhaps your first job, then a gap, then the other job? Just searching for an answer.
  • DanielRodrigues
    DanielRodrigues Posts: 13 Forumite
    edited 22 January 2024 at 3:51PM
    How on earth did you get £650 back for mileage when HMRC show £726 - tax relief would amount to £145.20. Is it a coincidence that your refund equalled the tax paid on the second job? Was this perhaps your first job, then a gap, then the other job? Just searching for an answer.

    Good Evening,

    I did asked for £726 of tax relief from my mileage allowance but they said that after doing some calculations that I would only get £650. On the time I didn't complaint but now I see that it is strange.

    I didn't had any gap in between jobs.

    Thank you
  • bigfreddiel
    bigfreddiel Posts: 4,263 Forumite
    Did you put your bank account details on your tax return?
  • Did you put your bank account details on your tax return?

    Good Evening,

    Yes I did but didnt had much of a result since I had to insert them again on their website. I called HMRC to know why and they said that this is the normal policy...

    Thank you
  • Good Evening,

    Yes I did but didnt had much of a result since I had to insert them again on their website. I called HMRC to know why and they said that this is the normal policy...

    Thank you

    Ask for a paper based return.

    Once your tax return is in you get the workings back so it's easy to check. As you did this online you could cut and paste the workings here. That would make it easy to spot any error.

    Cheers fj
  • uknick
    uknick Posts: 1,768 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Good Evening,

    I did asked for £726 of tax relief from my mileage allowance but they said that after doing some calculations that I would only get £650. On the time I didn't complaint but now I see that it is strange.

    I didn't had any gap in between jobs.

    Thank you

    When you say you asked for £726 of tax relief and they gave you £650, is this the amount of tax reduction in your overall bill?

    By this I mean, did you originally claim for about 8k of business miles in your own vehicle at 45p per mile? Therefore giving you £726 to offset against your overall tax liability at the 20% basic tax rate.
  • Silvertabby
    Silvertabby Posts: 10,132 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    The moral is, check everything carefully. When I retired earlier this year I transferred my personal tax allowance from my salary to my Armed Forces pension, with my Local Government pension then being taxed at basic rate.

    My tax has always been simple - no add ons or anything complicated, so I couldn't understand why they then said that I owed £2K from last year, and that they would recover it from my Armed Forces pension over 12 months. I rang to query this and, after a fair bit of humming and ha-ing, the lady I spoke to confirmed that I actually only owed just £2. She didn't admit it, but I'm convinced it was down to fat finger syndrome on someone's behalf!
  • uknick wrote: »
    When you say you asked for £726 of tax relief and they gave you £650, is this the amount of tax reduction in your overall bill?

    By this I mean, did you originally claim for about 8k of business miles in your own vehicle at 45p per mile? Therefore giving you £726 to offset against your overall tax liability at the 20% basic tax rate.

    Good Morning,

    I requested for £726 of tax relief due to my travelling as my company only paid £0.25 per mile so I had to claim the other £0.20 from HMRC. They confirmed all was fine and that after a few calculations I wasn't going to get a bank transfer of £726 but £650. I didn't question them then as I assume they did the best judgement but now I'm not that sure....
  • Good Morning,

    I requested for £726 of tax relief due to my travelling as my company only paid £0.25 per mile so I had to claim the other £0.20 from HMRC. They confirmed all was fine and that after a few calculations I wasn't going to get a bank transfer of £726 but £650. I didn't question them then as I assume they did the best judgement but now I'm not that sure....

    HMRC don't make up the difference they just reduce the tax on the amount you paid over pathetic allowance your skinflint company pays. In your case this would be 4 pence a mile.
  • How many miles did you do?
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