HMRC Mileage allowance

SimonMcjohn

Hello, I need some advice, I work in the care sector and have done for over 5 years. I have never claimed for mileage allowance in the past as I was paid the maximum 45p a mile. This year is the first year I have claimed the mileage allowance I worked out I was owed £1,700 in allowance and then on top I am entitled to the clothing allowance which is £140 a year. when I tried to claim allowance from HMRC they informed that was entitled to £1,890 I thought great then they informed that I owed them £1,890 in back taxes for 3 months from Dec to March when I changed companies back in December my P45 was late. they said I was working two jobs at the same time, I was never paid any wages from my previous employer after the end of December apart from holiday pay. I only earn about £15,700 a year when I used the HMRC calculator I should only pay £2,134 any year for both TAX and NI. I have sent letters and spoken on the phone and they are adamant I owed them the and tax I asked them how they worked out what I owed them the money they said the figures they have, even my old company have said they are wrong and haven't paid me since December. My tax code hasn't changed, all the paperwork I have, like my p45 and the p60 show I have paid tax I am at a lost any help would be great. Simon

Dazed_and_confused

I worked out I was owed £1,700 in allowance and then on top I am entitled to the clothing allowance which is £140 a year.

HMRC don't pay either mileage or clothing allowance (unless you work for them I guess). They pay tax relief on allowable expenses so as a basic rate payer the most you are likely to be entitled to is around £368 (£1,840 x 20%).

When you say "this is the first year" do you mean 2017:18?

Have they sent you a calculation?

Have you looked at your personal tax account to see what information each employer sent to HMRC.

Owing tax after a change of jobs is quite normal. It's usually because you are paid twice in one month, once by the old company and then again by the new employer and sometimes if the new company uses the "emergency" tax code you have benefitted from too many allowances.

Having said that it's usually nowhere near £2k!

More info would help really, some things don't make much sense to be honest

when I tried to claim allowance from HMRC they informed that was entitled to £1,890 I thought great then they informed that I owed them £1,890