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Tax Credit claim - question about deduction

Stu666
Posts: 147 Forumite


in Cutting tax
Hi all. I work for a local government authority and regularly claim mileage for use of my own car on official business. I pay for diesel out of my own pocket and claim it back usually in the following month's pay.
I am struggling to work out whether I need to deduct these mileage reimbursement payments from my Tax Credit claim, since it is not "earned" income? I am conscious that HMRC go off my P60 for amount earned, however, because I pay into the LGPS pension scheme, I am having a hard time working out what has already been deducted before arriving at my P60 figure. Maths has never been my forte!
Currently the reimbursement payments are no more than £500/year but in previous years they could well have run into the thousands.
I am struggling to work out whether I need to deduct these mileage reimbursement payments from my Tax Credit claim, since it is not "earned" income? I am conscious that HMRC go off my P60 for amount earned, however, because I pay into the LGPS pension scheme, I am having a hard time working out what has already been deducted before arriving at my P60 figure. Maths has never been my forte!
Currently the reimbursement payments are no more than £500/year but in previous years they could well have run into the thousands.
0
Comments
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If the reimbursements are not taxable, because they are reimbursements for business mileage at no more than the agreed rate (45p a mile for the first 10,000 miles, 25p thereafter), then they should not affect your tax credit claim.1
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Additionally, it is the P60 figure that is required for the tax credit application. The pension contributions can also be ignored.1
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