Explain Mileage Allowance Relief

Llyllyll

mhurren wrote: »

...My employer allows the shorter of the distance from home or office to client site. I live about 35 miles from my base office, and travel in all directions to various clients.

If, for example, I travel to somewhere 50 miles from home, but just 25 miles from the office, my employer will only allow me to claim 25, but am I entitled to 50 as this represents the journey that I have to make in the performance of my duties of employment?

Many employers decide to deduct the home to office distance from any and all claims as it tends to simplfy their record keeping (not fewer records, just simpler).

As per the link provided by cash99, you are then in temporary workplace territory. This can be a bit of a minefield and there are a number of things that need to be considered if you claim (as in your example) the full 50 miles - it's all in HMRC guidance.

Should you go down this route however, I would suggest keeping very detailed and accurate records of all travel.

stphnstevey

inmypocketnottheirs wrote: »

Even more so now I make my own bio diesel and it costs me about 20p a litre!

Legally?

Is the diesal rates 40p a mile as well?

Pont

I've been working for the same employer for 5 years+. I have been reimbursed for my petrol during the years from approx 28ppm to currently approx 32ppm. However, I have subject to tax /NI on this reimbursment as it has been added to my gross salary. I have contacted the tax office by phone who have confirmed this is incorrect and my employer should not be doing this as it is tax/NI exempt.

To continue I have sent all of my documents/calculations etc to the tax office stating that I should be refunded my overpayments for the past 5 years, that I want tax relief for the difference between my reimbursment and the allowed 40ppm for the past 5 years etc. etc. I've also stated that my student loan repayments are incorrect as my recorded gross salary was incorrect and I want the overpayment refunded, tax credit award is incorrect and so on - it's a total mess! To compound matters my employer is insisting that 'their' method of calculation is correct so the problem continues (despite me emailing all of the information off the Inland Revenue site)!

The tax office have had my full details and 5 years of salary slips for 3 months, when can I expect some response????

inmypocketnottheirs

stphnstevey wrote: »

Legally?
Totally. No excise duty on the first 2500 litres per year produced.

Is the diesal rates 40p a mile as well?
40p per mile for the 1st 10,000 miles, 25p per mile thereafter. Petrol, diesel, LPG or hybrid, doesn't matter.

Just produced 100 litres tonight!

dellboy102

Quick question guys, will be filling out a self assessment online, can this be used as an alternative to form P87 to claim tax relief on the shortfall for using my own car?

jennifernil

I always entered my husband's car expenses claim on his self assessment form, I think you only need the other form if you have no SA form, or are claiming later.

withabix

dellboy102 wrote: »

Quick question guys, will be filling out a self assessment online, can this be used as an alternative to form P87 to claim tax relief on the shortfall for using my own car?

Yes, this is the normal way of doing it if you are on Self Assessment.

P87 is only used if you aren't or are claiming for years prior to previous tax year.

RainMaker_2

What is the tax situation if an employer pays less than the 40p / mile allowed by HMRC ? Can this be treated as a loss and offset against earned income ?

david69_2

RainMaker wrote: »

What is the tax situation if an employer pays less than the 40p / mile allowed by HMRC ? Can this be treated as a loss and offset against earned income ?

good question I'd like to know the answer to this aswell if anyone can help

Michael_Nottingham

david69 wrote: »

good question I'd like to know the answer to this aswell if anyone can help

You enter the difference as a work expense - it then gets deducted from your income

I cant remember exactly where this is on the tax form - but from memory it was obvious. Also the help guide with your tax return explains it all (and unusually can actually be understood!)