Business Mileage Tax Relief

Jamesie2018

Hi there, first off a "newbie alert" - I am not sure if I am posting this in the correct place so please point me in the right direction if not.

I have a very simply question. I know I need to compete a self assessment to the claim back the 15p per mile for the first 10,000 miles and I know it needs to be a self assessment due to claiming for multiple years and the value likely to be over £2,500. My question is, do I just do a one off Self Assessment specifically and only for this purpose, or does it need to be part of a complete Self Assessment containing all the rest of the income, investments etc for the whole financial year? I am not currently completing Self Assessments because HMRC wrote to me and told me not to continue, and advised that I just go back to PAYE.

Thanks in advance for any advise?

Cheers

Paul

BoGoF

You only need to do a Tax Return if the amount of expenses is over £2500 in any given tax year. The fact you are claiming for more than one year does not affect this. Based on what you have said there is no need for you to complete returns.

Jamesie2018

Thanks, so if I want to apply for mileage tax relief for the last 4 years how do I go about that?

Dazed_and_confused

Have you looked at form P87?

Also, only your employer can reimburse the mileage.

You can claim tax relief on your allowable expenses from HMRC but that usually works out between 0p and 6p* depending on your income for the year

* based on you getting 15p less than the maximum 45p per mile your employer could pay you tax free if they wished

Jamesie2018

Thanks, yes, I have read about IP87 but thought that was just for single years. I will go off and have a look at it.

Thanks very much for all your help, as a newbie I am very pleasantly surprised with responsiveness and helpfulness

Cheers

dont_use_vistaprint

Remember to claim the 5ppm for each passenger and any applicable VAT for the fuel portion :-)

Dazed_and_confused

A P87 is for a single specific tax year.

Just like a Self Assessment return is for a single specific tax year.

You would have to complete one, either a P87 or Self Assessment return, for each year you wish to claim (tax relief) for.

antrobus

dont_use_vistaprint wrote: »

Remember to claim the 5ppm for each passenger and any applicable VAT for the fuel portion :-)

Passenger payments - cars and vans
5p per passenger per business mile for carrying fellow employees in a car or van on journeys which are also work journeys for them. Only payments specifically for carrying passengers count and there is no relief if you receive less than 5p or nothing at all.

https://www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances/travel-mileage-and-fuel-rates-and-allowances

As in, the employer can pay up to 5p per mile for passengers and there is no tax to pay, but no tax relief is available if they don't.

And the mileage rates are VAT inclusive. There is no additional claim for the 'applicable VAT'.