Is mileage expense taxable?

asset2004

Quick question.
My tax advisor says that I must declare the expenses I have received from work for my mileage claim. Is this correct?
I did just under 10,000 miles during 17/18 and my work pays 40p per mile. My understanding is I am entitled to 45p per mile so therefore could claim the 5p per mile back. However my tax advisor has said I must declare the mileage I received as income and pay tax on this? He also says my work must give me a P11D form which I have never received. Work say they do not to issue a p11D form as there are no other additional benefits apart from 40p/mile.
I do not receive a car allowance.
According to gov.uk -
If your employer doesn’t pay you a mileage allowance you can claim the full approved amount of Mileage Allowance Relief.
If your employer pays you a mileage allowance but it is less than the approved amount, you can claim Mileage Allowance Relief on the difference.

So for easy calculation 10,000 miles at 40p mile is £4000 I have received. If I'd been paid 45p/mile I would have received £4500, so my understanding is that I can claim for the extra £500. Is that the Mileage Allowance Relief?
Is this correct?
TIA

00ec25

what qualifications does your tax "adviser" hold?

asset2004

00ec25 wrote: »

what qualifications does your tax "adviser" hold?

formally inspector of taxes.
If this is correct then I suspect that many, many individuals do not know this and will not be adding their mileage expense as an income.

greenbee

The guidance on the self assessment form should be what you follow. Your 'former' tax inspector may be confused.

Mileage expenses are never on a P11D as they are processed based on expenses incurred and aren't a 'benefit'. They're a reimbursement (and therefore aren't income as they are actually paid AFTER you've incurred the expense).

Even car allowances don't go on the P11D - they are paid monthly and taxed as income via PAYE.

I've been on self assessment since I started work, have always dealt with mileage claims this way (my last employer paid a car allowance and 6p/mile, my current one pays 45p/mile which frankly saves a lot of effort in terms of going through expense reports to find the mileage detail - and when you submit over £50k in expenses a year the mileage is hard to locate!) and had my returns reviewed and NEVER been told to submit reimbursements as income.

If your 'tax advisor' was right, presumably I'd have to declare all my flights, hotels, meals, taxis, vaccinations, stationery etc as income and would end up hugely out of pocket.

I suggest you save money by sacking your tax advisor and following the instructions on the tax return form, which are pretty clear. Self assessment has got a LOT easier since it's been online!

pjclar02

Hello there

Your tax advisor is not correct - unless the mileage payments are in excess of the HMRC approved limits, there is no requirement to declare on form P11d. You can claim the additional 5p per mile as a tax deductible expense on your self-assessment return

Pennywise

asset2004 wrote: »

formally inspector of taxes.

Who's probably not moved on from the old days before the new expenses reporting rules were introduced! He's not right. Mileage under the HMRC official rates isn't reported on P11d forms. In your tax return, you claim an expense as the difference between the HMRC rates and what you actually received.

asset2004

Thank you everyone.
I have been thinking about this a lot since I posted the query and was not convinced he was correct. If it was it would mean everyone who claimed a mileage expense would need to submit a self assessment form.
I may need to re evaluate my advisor

[Deleted User]

The difference goes in the online equivalence of box 17 attached.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/690320/sa102-2018.pdf

asset2004

[Deleted User] wrote:

The difference goes in the online equivalence of box 17 attached.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/690320/sa102-2018.pdf

Thanks, so would be £500 as claiming 5p for the 10,000 miles?
And is there anything to put in box 18?
Thank you.

[Deleted User]

asset2004 wrote: »

Thanks, so would be £500 as claiming 5p for the 10,000 miles?
And is there anything to put in box 18?
Thank you.

Correct on the 5p.

Box 18 is an entirely different claim e.g. tools allowance

Dazed_and_confused

I did just under 10,000 miles during 17/18 and my work pays 40p per mile. My understanding is I am entitled to 45p per mile so therefore could claim the 5p per mile back

Thanks, so would be £500 as claiming 5p for the 10,000 miles?

No. You can only claim the mileage from your employer. You can claim tax relief from HMRC.

So an expenses claim of £500 would normally save you anything from £0 to £200. Often £100. Could be more than £200 in exceptional circumstances.