Form P87

LNEWTON93

Hello,


Last year I did a form P87 for my work mileage and the claim was reimbursed through my tax code.


This year my claim will be significantly more. About £3K. Now I understand the max on form P87 is £2,500? So may have to do a self assessment. Pending on the exact claim.


Will this is also be adjusted through my tax code, or would it be possible for me to take a direct refund for this?


TIA

jobbingmusician

I suspect this question might attract more replies on the Tax board. Would you like me to move it there?

LNEWTON93

Yes please. Thank you

Dazed_and_confused

When you complete your self assessment return any refund due for the year the return has been completed for will be refunded direct to you (assuming you fill your bank details in correctly on the form).

HMRC might then use the figures from 2017:18 as an estimate for your 2018:19 tax code but you will get anything due for 2017:18 direct, not by an increased tax code (it might seem confusing at first if you get a new tax code because it will likely show the same expenses figure as you put on your return but that will not be an attempt to give you the relief due for 2017:18, simply keeping your tax code for 2018:19 upto date with the latest information.

So if you think your expenses for 2018:19 are going to be lower it'd be a good idea to ask HMRC to reduce the expenses in your code so you don't end up with a big bill.

Dazed_and_confused

Last year I did a form P87 for my work mileage and the claim was reimbursed through my tax code

Thinking about this seems highly unusual. Normally you would get a refund direct for the year you completed the P87 for and your tax code for the current tax year would be updated to include an estimate (often the same amount as the year before) of your expenses for the current year.

In short I don't think you have been refunded anything via your tax code you are simply getting tax relief for this year's expenses.

You should have received a cheque or invitation to claim the tax refund money into your bank account via a form called a P800 - did this not happen?

For example if your 2016:17 P87 showed net expenses of £1000 you would get a P800 calculation for 2016:17 with the expenses of £1000 included.

And a new tax code for 2017:18 with an estimate of £1000 for the expenses you are incurring in 2017:18. This tax code is not giving you a refund for 2016:17.

jobbingmusician

I almost wonder if it's worth moving this now, as you seem to have got good advice! However, your wish is my command.....

LNEWTON93

Thank you all for the the answers.

In May time last year my tax code changed by the exact amount I claimed for in 2016/17. Which was £600 or so.

I did not receive any check or BACs from HMRC for the net element of that.

I'm guessing I'm due a lengthy call to HMRC to get them to issue a cheque for last year.

My claim for this year will circa £3K. So I should expect my tax code to increase by £2.4K and I should get a net tax relief of £480?

Are my assumptions correct here?

Dazed_and_confused

Basically yes, when you do your self assessment return you have already received tax relief (for 2017:18) on £600 so relief is due on an additional £2,400 which for a basic rate payer would be a refund, assuming no other complications and enough tax was paid, of around £480 (£2,400 x 20%).

The only reason I can think why you haven't received anything for 2016:17 is maybe you owed a similar amount for some reason and they essentially cancelled each other out? For example if you had employer benefits such as private medical insurance and some extra tax was due on that which overall meant no refund was due?

But it's all guesswork, you will have to check it out with HMRC I think.

Phoning just before before 8am is the suggested best time apparently

ceh209

Dazed_and_confused wrote: »

Last year I did a form P87 for my work mileage and the claim was reimbursed through my tax code

Thinking about this seems highly unusual. Normally you would get a refund direct for the year you completed the P87 for and your tax code for the current tax year would be updated to include an estimate (often the same amount as the year before) of your expenses for the current year.

In short I don't think you have been refunded anything via your tax code you are simply getting tax relief for this year's expenses.

You should have received a cheque or invitation to claim the tax refund money into your bank account via a form called a P800 - did this not happen?

For example if your 2016:17 P87 showed net expenses of £1000 you would get a P800 calculation for 2016:17 with the expenses of £1000 included.

And a new tax code for 2017:18 with an estimate of £1000 for the expenses you are incurring in 2017:18. This tax code is not giving you a refund for 2016:17.

Unfortunately not. I did a P87 a few years ago and HMRC updated my tax code to give back the refund due, and what was due for the next 9i.e. current) year. I had to phone up to ask for a cheque, as I didn't see the point in getting £5 a month, I'd rather have it in one go... (Plus it wasn't going to re-occur so I got it removed for the next year)