Mileage Tax Relief

Caroline291187

Hi,

Looking for some advice. I work for the NHS and for the last 9 years I leased a car through them. It wasn’t a salary sacrifice scheme. I paid for the full cost of the lease, road tax, insurance and fuel costs. I was reinbursed for my fuel costs at a rate of 12p per mile.
I have just recently been informed that I am able to claim tax relief through the p87 form. Is anyone in here able to confirm that this is true?
Thanks in advance!
Caroline

BoGoF

Was this shown as a benefit in kind - did you recieve a P11d. If so, what does it show?

Dazed_and_confused

I have just recently been informed that I am able to claim tax relief through the p87 form

Who told you that and were they fully aware of the position with your car, which sounds like a company car (for tax purposes)?

What tax relief are you expecting to claim?

Caroline291187

Yes it was benefit in kind. I don’t think I have a p11d.
It wasn’t a company car - it was leased.
I had been told I would be able to claim the tax relief between the 45p and 11p.
Caroline

Dazed_and_confused

Are you sure it wasn't a company car? The 45p rate is for using your own car, not a company car.

I had been told I would be able to claim the tax relief between the 45p and 11p.

You claim tax on the difference between 45p and 11p (why has it changed from 12p?) so even if you are eligible to claim then you would get tax relief of 6.8p per mile (45p-11p = 34p x 20%).

This assumes you are a basic rate payer, did less than 10,000 business miles and paid enough tax to be refunded.

Was the car scheme similar to this https://www.swast.nhs.uk/Downloads/SWASFT%20Bulletin/Bulletin%20links/LeaseCarBooklet.pdf

Overview
The Trust Lease Car Scheme is designed to provide you and your family with
competitively priced and trouble free motoring. Under the Scheme, you lease a car
using the Trust's current lease car suppliers, normally for a period of three years.
There is no deposit and costs are fixed for all elements for the duration of the lease.
The car will be insured for yourself and up to four named drivers (assuming they are
legally entitled to drive).
At the end of the lease period you can return the car with no additional charge
subject to the vehicle meeting the required return standards and having covered no
more than the agreed contracted mileage. Employees will have the opportunity to
make further savings by the use of a salary sacrifice scheme subject to their salary not
being "sacrificed"; to a level below the national minimum wage. (The provision of a
company car will make the employee liable to a car benefit tax charge based on the
vehicle chosen.)

Caroline291187

Sorry my mistake I meant 12p.

Yes it was a scheme similar to that.

Yes I realise it would be relief on the difference - I’m just unsure if I am eligible.

BoGoF

Being leased doesn't mean it cant be treated as a company car.....hence why I asked what the P11d shows. If it was a benefit in kind you should have a P11d showing what the taxable benefit was.

Caroline291187

I will need to try and find out about the p11d.
On my tax form I!!!8217;m sure they listed it as being a company car - even though it was leased so there is a lot of confusion!

BoGoF

There is no confusion....it will be treated as a company car and the 12ppm you are getting will the maximum payable using the HMRC approved mileage rates for a company car. Nothing further you can claim I'm afraid.

Caroline291187

I’ve been on hold to HMRC and have asked them - they have told me to file a p87 form.

BoGoF

Did you tell them you had a company car?