Tax Credit P60

Maz_50

Hi,
I'm about to renew Tax credits for 2017/2018 and have my P60 showing gross taxable pay for the current year. I'm a carer and don't get paid a lot, but I have to pay for fuel, which makes a big dent in my pay. They do pay 15p per mile which isn't on the P60, but the way they work it comes in at about 10p.

Do I use the figure from the P60 for Tax credits or can I deduct any for the fuel I have to use.

Thank you

zagfles

Presume you're using your own car? You can make a deduction for Mileage Allowance Relief. See https://www.gov.uk/tax-relief-for-employees/business-mileage-fuel-costs

You should do this for income tax as well as tax credits.

BTW if you're not aware - you must get Class 1 business use on your car insurance, if you haven't got it you're not covered when you drive as part of your job. It's not usually much to get it added.

Maz_50

Thank you for your reply zagfles Yep I got business added for £20 more, so that wasn't to bad, I'm not sure if I can adjust the P60 figure for taxable pay as the company already pays 15p per mile, or how i would do it. Yep my own car.

zagfles

Maz_50 wrote: »

Thank you for your reply zagfles Yep I got business added for £20 more, so that wasn't to bad, I'm not sure if I can adjust the P60 figure for taxable pay as the company already pays 15p per mile, or how i would do it. Yep my own car.

Yes you can get tax relief on the difference between the HMRC rate and they rate they pay, usual HMRC rate is 45p a mile (for first 10,000 miles) so 45-15p =30p per mile.

So eg if you did 5000 miles you can deduct £1500 from your income for both tax and tax credits purposes.

Phone HMRC - see https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees

Do it for tax first then you'll get a tax code adjustment and should get a rebate for last year, then you can deduct it for tax credits. The HMRC tax people are usually very helpful, they're well used to this sort of thing.

Note you can't claim for normal commuting ie travel to a fixed normal place of work eg your office. The link in my previous post explains it well.

Keep copies of your expense claims as evidence, or ask your employer for a statement of annual business mileage if they don't already provide it.

Maz_50

That's great, hopefully the tax adjustment will be done before the end of the month, so I can then submit the Tax credit online.
Thank you for your help.

zagfles

Maz_50 wrote: »

That's great, hopefully the tax adjustment will be done before the end of the month, so I can then submit the Tax credit online.
Thank you for your help.

Sorry didn't mean to imply that you have to wait for the tax adjustment first - even if tax isn't sorted in time you can still do the deduction for tax credits. They should be the same. It's just better if tax credits can see you've done the same for tax.

Maz_50

Oh, OK will get it it done next week. Thank you.

Maz_50

Hi,
Just one more question. Do I calculate the travel expenses up to the end of the last tax year or up to today.
Thanks.

zagfles

Maz_50 wrote: »

Hi,
Just one more question. Do I calculate the travel expenses up to the end of the last tax year or up to today.
Thanks.

The tax year, everything to do with tax credits uses the tax year.