Mileage claim

Gror

Hello. Can anybody offer any advice. I'm trying to claim mileage allowance for a previous job. However I've spoken to HMRC who are saying as my employer didn't contribute anything of the 45p then I can't claim, whereas if they contributed anything then I can claim the remaining amount up to the 45p. This seems a bit wrong to me. Especially when I'm enquired through the online companies who say I've got a claim and they would act for me (but I won't get as much also they take their cut).
Anyone any help at all please.

Thank you.

DUTR

Do you have a P111 statement for the years you are on about?

unholyangel

I think there's been some confusion somewhere.

Did you check the eligibility criteria and are you eligible? How did you apply? Did you have tax liability for the year you are claiming thats greater than the tax relief you were claiming? Did you keep a record of all business miles (not including journeys to a regular workplace)? Is it your own vehicle that you purchased or leased yourself?

Have you tried calling them?

System

Gror wrote: »

I'm trying to claim mileage allowance for a previous job.

On what grounds? I'm only asking because you're mentioning ambulance chasing companies later in your post.

However I've spoken to HMRC who are saying as my employer didn't contribute anything of the 45p then I can't claim, whereas if they contributed anything then I can claim the remaining amount up to the 45p. This seems a bit wrong to me.

You're misunderstanding the advice you were given. If the 45p wasn't paid to you tax free by your employer you can claim 45p per mile as a tax deductible expense. You would then be refunded 20% of that 45p per mile out of income tax you've paid on your wages. If you've not paid sufficient income tax to cover the amount you're claiming then because its a refund of income tax you'll be paid less than you would have had you earned sufficient or if you pay no income tax at all you'd get nothing as there's no tax to refund from. HMRC don't give you 45p per mile, they just apply the tax relief.

Examples (based on £11,500 personal tax allowance)

Salary £17,500, mileage claimed £4000. 20% of £4000 is £800. Because you've earned £6000 taxable income over the personal allowance you receive the full £800.

Salary £13,500, mileage claimed £4000. 20% of £400 is £800. However because you've only earned £2000 taxable income over the personal allowance and only paid £400 in income tax you will only receive £400

Salary £10,000, mileage claimed £4000, 20% of £4000 is £800. However because you've not paid any income tax at all as you've not reached the personal allowance there is nothing for HMRC to refund you from. You will receive £0.

IMPORTANT NOTE:
Anything you claim because your employer didn't reimburse you will reduce your taxable income for the year, even if you get refunded £0. This means for income based benefits such as working tax credit the income used to calculate your payments will be lower which may result in a higher award or actually qualifying for benefits you previously were earning too much to. Using the examples above with the £4000 claimed in each it would mean you reported an annual income of £13,500, £9500 and £6000 respectively.

Anything your employer pays up to the HMRC tax free limit for mileage does not have to be declared as income.

unholyangel

DUTR wrote: »

Do you have a P111 statement for the years you are on about?

Do you mean p11d? Never heard of a p111.

If so, I wouldn't expect OP does given it only declares the cash equivalent of any benefits or expenses covered by the employer.

DUTR

unholyangel wrote: »

Do you mean p11d? Never heard of a p111.

If so, I wouldn't expect OP does given it only declares the cash equivalent of any benefits or expenses covered by the employer.

Yes I did mean P11D.

unholyangel

DUTR wrote: »

Yes I did mean P11D.

Thanks, I wasn't sure as theres that many forms it can be easy to forget some of them!

DUTR

unholyangel wrote: »

Thanks, I wasn't sure as theres that many forms it can be easy to forget some of them!

It's just out of bad habit I call it the P111, ours are kept online from every travel claim made, but we get a statement (P11D) every year.

Gror

Thank you.
I was only in the employment for 5 months. My employer didn't reimburse me any of the 45p allowance and my tax for the year was correct as I was on the correct cumulative tax code.
Was looking to claim the approx 1100 miles I had covered as reimbursement and thats when HMRC said I can't claim anything.

Gror

No I don't have a p11d. It was usage of my own vehicle and I was only in the employment 5 months.

DUTR

Gror wrote: »

Thank you.
I was only in the employment for 5 months. My employer didn't reimburse me any of the 45p allowance and my tax for the year was correct as I was on the correct cumulative tax code.
Was looking to claim the approx 1100 miles I had covered as reimbursement and thats when HMRC said I can't claim anything.

At our place we have to register our vehicle engine size and that before we can claim for any mileage.