Fuel Allowance

grangers72

Good Afternoon


I would like a bit of advice on fuel allowance. From 2011-2015 I was being paid 25p per mile for business mileage in my own car - I was told this was the going rate which I took as gospel.


I see now that the entitlement is 45p per mile up to 10,000 - then 25p there after. I usually drive 15-20k a year. First question is can I claim back the additional 20p per mile going back to 2011? This equates to £8k - and in this employment I did not receive a car allowance.


In November 2015 the company I worked was bought by another - and I instantly went to 45p per mile until I left in December 2016.


In my new role my employers pay 25p a mile and advise I need to claim back the extra 20p by completing a P87 tax relief form - however on this form there are pages for other expenses such as food and hotels which my employers pay back to me each month, so do I not fill this parts in? It also states on the P87 that if allowable expenses exceed £2,500 I have to complete a Self Assessment Form, due to the nature of my work I exceed this amount.


So would I need to complete a SAF? Why do employers not pay the 45p per mile which is the employees entitlement and actually states on the P87 are 'rates payable for vehicles set by law'.


Thanks in advice for your advice

Linton

You twice say claim back the difference between your employer's payment and 45p . I am afraid that is wrong. All you can do is to claim back the tax on the difference. The 45p isnt an entitlement for you to be paid, it's the maximum that HMRC will accept as a mileage payment. Anything beyond that would be taxed.

On the other expenses, HMRC may be able to tax you on them, but normally wont.

sheramber

You can claim back tax four years after the end of the tax year you’re claiming

You can claim tax back to 2013/14 onwards until 5 April 2018.

You need to make a claim for each year separately.

00ec25

grangers72 wrote: »

In my new role my employers pay 25p a mile and advise I need to claim back the extra 20p by completing a P87 tax relief form - however on this form there are pages for other expenses such as food and hotels which my employers pay back to me each month, so do I not fill this parts in? It also states on the P87 that if allowable expenses exceed £2,500 I have to complete a Self Assessment Form, due to the nature of my work I exceed this amount.

then the P87 means what it says. Let us use your stated example of 20,000 miles paid at 25ppm in a single tax year. You are "allowed" 45ppm on the first 10k, so your claim is for 10,000 x 20p = £2,000. You cannot claim any more mileage that year as all of the subsequent mileage was paid at the approved 25ppm rate

if that is the sum total of your claim for that tax year you can do it on a P87. If you claim other items in the same tax year and thus exceed £2,500 you cannot use a P87 and must complete a full tax return instead.

i presume you have failed to understand that what you actually receive is £2,000 x your tax rate , so assuming you are a basic rate taxpayer you will receive £400 against your 2k claim

grangers72 wrote: »

Why do employers not pay the 45p per mile which is the employees entitlement and actually states on the P87 are 'rates payable for vehicles set by law'.

you misunderstand

tax law sets a figure (45ppm and 25ppm) UP TO which employers can pay without the employee having to pay tax on the amount they receive. Payments in excess of those sums are taxable. The employer is not required to pay those amounts, they can pay ;less (your case) or more at their own discretion