P11D query

lcc86

Hi,


I think I know the answer to this but wanted to double check as my employer is not being particularly helpful. I use my own vehicle for work and claim mileage back through our online system. I received a letter and a P11D form from my employer a couple of months ago. They have completed section 'E' - expenses not taxed at source - with a figure of £17.40 relating to mileage (this is the only expense I claim so I know it does not relate to anything else). As a result HMRC have amended my tax code. However when I looked into it my understanding was you only need to submit a P11D if you go over a certain amount of miles, which I definitely have not done (I've done about 200 business miles since I began at at this employer in November 2018 up to April 2019). I get paid 65p per mile.


I've asked my employer to look into it but they just aren't getting back to me. Can I go straight to HMRC to rectify this or does it have to be done through my employer? I've sent my employer the link below as proof that I don't think I should have to submit a P11D and have asked them to rectify it asap. It's not a huge amount but I've claimed expenses in other jobs and never had this issue before and don't want my tax code to be affected if it doesn't need to be.


https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax

BoGoF

Your employer can only pay you 45 pence per mile tax free. Anything above this is taxable. So if you are getting 65 ppm then 20p is taxable.

Caz3121

lcc86 wrote: »

I've claimed expenses in other jobs and never had this issue before

if your other jobs were paying more than the 45p per mile then you should have...

lcc86

Okay that makes much more sense now. I did think 65p was more than most jobs when I worked it out, but without getting a response from my employer I couldn't be 100% sure why they'd submitted it.


Thanks for your help!

Dazed_and_confused

£17.40 would suggest only 87 miles but I don't think you need to worry about that.

At the end of the day you have received a very generous mileage rate and will pay anywhere between £0 and about £11 tax on the £17 benefit, most likely between £3.50 and £7.

lcc86

Dazed_and_confused wrote: »

£17.40 would suggest only 87 miles but I don't think you need to worry about that.

At the end of the day you have received a very generous mileage rate and will pay anywhere between £0 and about £11 tax on the £17 benefit, most likely between £3.50 and £7.

Yes I have to be honest I didn't realise I got 65p per mile until recently. Very generous especially for a local authority! Still worth claiming the mileage back even with the tax now that I understand exactly what it is for.

Dazed_and_confused

And as you only mention a change of tax code, which would be an estimate for the current tax year (usually based on last year's P11D) it's quite possible HMRC haven't actually bothered sending you a bill for 2018:19.

So for that year at least you may well have got the 65p and no extra tax to pay