HMRC refusing approved mileage tax relief claim - unsure why?

BoGoF

joecmorgan21 said:

sheramber said:

if it was a company credit card, did they not pay the amounts due on it?

Why are the payments on your credit card statements?

Apologies, I meant my company credit card statements via Revolut. I'll have to speak to the company to get them.

Jono111 said:

Then use the mileage rate that does not include fuel from HMRC website and it's simply multiplying the mileage from your records by the reduced rate and then multipling again by your tax rate.

As another comment states, this doesn't seem to exist. The only rate I can find 45p per mile for the first 10,000 miles. So in my case for 21/22 - (45 * 2381)/100 = £1071.45. Websites such as this do the same calculation.

Jono111 said:
As HMRC have already picked up on, did you pay the company back for the fuel on your private trips, if not you should have declared the amount of free fuel as benefit in kind.

The company did not pay for my fuel for private trips. Whenever I would be working away, I would calculate roughly how much fuel I'd need for the journey, and fill up my car. Usually I'd underestimate but if I overestimated I'd deduct how much fuel was left over from the next journey. I now realise how primitive this method is, but that was company policy... I never received a private trip fuel allowance/benefit from the company.

How do I go about explaining this to HMRC?

Thanks

You're still not explaining it well I'm afraid.

Did the amount of fuel you bought go on a company credit card? Yes or no.

If Yes they should have reported it on a P11d as a taxable benefit. To offset that taxable benefit you claim tax relief on your business mileage. You deduct the amount of fuel paid for by the employer from your AMAP claim and you get tax relief on the difference.

You need to tell HMRC that your employer paid for £x amount of fuel. X being the total amount of tbe credit card bills each tax year. If you didn't use this method in 22/23 you will need to amend your Tac Return.

HMRC may want to speak to your employer about their dodgy methods.

sheramber

https://www.gov.uk/expenses-and-benefits-company-cars/whats-exempt

Fuel that employees pay for

You do not have to pay or report on fuel, including for private journeys, if either:

• employees buy the fuel for their own use
• you buy it and they pay you back during the tax year, and their payment is equal to or more than the amount you paid

sheramber

you would claim business miles at 45p but  declare tha amount paid by your employer for business fuel, as the mileage allowance covers fuel as well as other expenses
 e.g. 
21/22
2381 x 45 = 1071.45 

less the amount paid by your employer for fuel.

joecmorgan21

Thank you again for the replies. The last thing I want is for HMRC to contact my former company over this - it’s not worth the hassle in my opinion, I’d prefer to drop the claim. I’ve just read this - https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax - which states: 

Anything above the ‘approved amount’

You must:

• report on form P11D
• add anything above the ‘approved amount’ to the employee’s pay, and deduct and pay tax as normal

Anything below the ‘approved amount’

You will not have to report to HMRC or pay tax, but:

• your employee will be able to get tax relief (called Mileage Allowance Relief, or MAR) on the unused balance of the approved amount
• you can make separate optional reports to HMRCof any such unused balances under a scheme called the Mileage Allowance Relief Optional Reporting Scheme (MARORS) - contact HMRC to join the scheme

My approved amount for 2021-22 was £1071.45, so assuming the amount of fuel payed for by the company for my journeys in that period was less than £1071.45, they wouldn’t need to declare it in a P11d? For all I know they have declared one, I just want to keep them out of this if at all possible.

If I asked my old company to see my credit card statements, and totalled the amount of money spent at fuel stations in each tax year, would that be sufficient for HMRC? E.g. let’s say it totalled £750, I could add that to my claim for 21/22 as a benefit, whilst the company would not need to have provided a P11d?

Also, just to clarify, any personal journey I took I paid for the fuel myself, with my own money. Any business trip I took I paid for fuel with company credit card, using the following method:

Whenever I would be working away, I would calculate roughly how much fuel I'd need for the journey, and fill up my car. Usually I'd underestimate but if I overestimated I'd deduct how much fuel was left over from the next journey.

Thanks again.

BoGoF

joecmorgan21 said:

Thank you again for the replies. The last thing I want is for HMRC to contact my former company over this - it’s not worth the hassle in my opinion, I’d prefer to drop the claim. I’ve just read this - https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax - which states: 

Anything above the ‘approved amount’

You must:

• report on form P11D
• add anything above the ‘approved amount’ to the employee’s pay, and deduct and pay tax as normal

Anything below the ‘approved amount’

You will not have to report to HMRC or pay tax, but:

• your employee will be able to get tax relief (called Mileage Allowance Relief, or MAR) on the unused balance of the approved amount
• you can make separate optional reports to HMRCof any such unused balances under a scheme called the Mileage Allowance Relief Optional Reporting Scheme (MARORS) - contact HMRC to join the scheme

My approved amount for 2021-22 was £1071.45, so assuming the amount of fuel payed for by the company for my journeys in that period was less than £1071.45, they wouldn’t need to declare it in a P11d? For all I know they have declared one, I just want to keep them out of this if at all possible.

If I asked my old company to see my credit card statements, and totalled the amount of money spent at fuel stations in each tax year, would that be sufficient for HMRC? E.g. let’s say it totalled £750, I could add that to my claim for 21/22 as a benefit, whilst the company would not need to have provided a P11d?

Also, just to clarify, any personal journey I took I paid for the fuel myself, with my own money. Any business trip I took I paid for fuel with company credit card, using the following method:

Whenever I would be working away, I would calculate roughly how much fuel I'd need for the journey, and fill up my car. Usually I'd underestimate but if I overestimated I'd deduct how much fuel was left over from the next journey.

Thanks again.

You misunderstand - by paying above the approved rate HMRC mean a set rate per mile. If your employer reimbursed you at 45p/20p per mile then that ia fine, nothing to report. If they paid you more than that then they have to report it.

However, your employer didn't pay you per mile but put the spend on a credit card. You could try just saying to HMRC that your employer contributed whatever the credit card statementa show. They may or may not take it further.

sheramber

You explain what you have claimed here.

You did not have a fuel card.

You calculated the amount of fuel needed for each business trip before you went and bought that amount of fuel , and paid for it on the company credit.   

However you can only claim tax relief on the difference between what your employer paid and what your approved mileage allowance works out at.

Using your figures  that would be

£1071 .45 less £750 ( or how ever much the employer paid on the credit card.)  = £321.45

Whether HMRC will accept that or ask for more information nobody can say. That will be up to the officer dealing with your case.