Mileage expense tax relief

uk1359

Hello

I have a quick question on mileage tax relief which I cant find an answer to.

I submitted a claim to HMRC using the online claim form for the 21-22 tax year.

I have total mileage cost of £1290 (at 45p per mile). Employer reimbursed £299. Therefore total tax relief claim of £991.

I was expecting 40% relief on this so £396 refund as my taxable income for the year is more than a few thousand over the higher rate limit but have only received £265. 

HMRC say that the refund amount is due to part of the refund being at 20% and part being at 40% is this right? I thought that tax relief was on whatever your highest rate of tax is until it pushes you down to the next boundary

Any help appreciated.

lisyloo

It sounds like they think you've crossed that boundary.
Not sure anyone can help unless you post figures.
Do you have pension contributions, gift aid etc.

uk1359

I cant think of anything that would bring me under the threshold.
Total pay £61050
Pension contributions through salary exchange £3009
Gross taxable pay £58038

So Im well into the higher rate band.

sheramber

Have they sent you a calculation or is one shown on your personal tax account?

Dazed_and_C0nfused

You could owe tax for some reason?  Company benefits, untaxed interest etc.

uk1359

 When I called hmrc I said that I thought the difference was due to the working from home tax relief not being applied as the difference is approx £125. They said that this relief had been correctly applied and was included in my tax code - and then went on to say it was due to 40% vs 20% relief.

However, looking at the calculation they have sent me it does not seem to be included. The only deductions/allowances they have included are the £983 expenses and £12570 personal allowance.

So from the calculation my total tax payable includes expenses, personal allowance but not working from home allowance.
And tax Ive already paid includes personal allowance, working from home allowance but not expenses. 
So when they calculate the difference it misses the working from home allowance.

Dazed_and_C0nfused

uk1359 said:

 When I called hmrc I said that I thought the difference was due to the working from home tax relief not being applied as the difference is approx £125. They said that this relief had been correctly applied and was included in my tax code - and then went on to say it was due to 40% vs 20% relief.

However, looking at the calculation they have sent me it does not seem to be included. The only deductions/allowances they have included are the £983 expenses and £12570 personal allowance.

So from the calculation my total tax payable includes expenses, personal allowance but not working from home allowance.
And tax Ive already paid includes personal allowance, working from home allowance but not expenses. 
So when they calculate the difference it misses the working from home allowance.

What was in your tax code really isn't relevant.

If you made a valid claim for the tax year in question if should be included on the end of year tax calculation.

Did you complete a P87 for the mileage claim and if so did you include the WFH claim on that?