Tax Relief for Mileage

Yuzo

So every year I submit my total miles for the tax year, the amount my employer has already paid me (8p per mile as the car is electric). It is classed as a personal car although they pay me a Cash for Cars payment every month to cover the car.

This year it is saying 'Total expenses claimed can’t be more than £2500.' ... it is showing as £3535 and that I need to fill out a Self Assessment Tax Return. I have never had this before any ideas?

Also i cant see anywhere on my Tax account to submit as Self Assessment, just that last years is currently pending.

Thank You.

Yuzo

One more question.

My company pay me a car allowance every month for my car. The car is leased in my name.

Is this classed as a company or private car?

DullGreyGuy

Assuming the allowance is taxed and you are then personally paying for the lease from your net salary then it's a personal car not a company car. 

You have to register to complete self assessment, if you haven't done so then you won't see the link to submit the assessment. https://www.gov.uk/register-for-self-assessment

Bookworm105

correct, the limit for claiming expenses for tax relief via the P87 form (in paper or online) is £2,500 total expenses
Claim tax relief for your job expenses if you cannot claim online - GOV.UK (www.gov.uk)

If you exceed that, you are required to make your claim via a full blown tax return 
So you will need to register for self assessment and submit a tax return by the relevant deadline having completed all applicable sections, ie: not just the expenses section!

the car is personal, it is in your name, not the company's.
The money from your company is taxed in full and is just extra salary. You may only get that money because you lease a car, but that is irrelevant in terms of who leases the car and depending on your contract of employment you may be allowed to spend all, more, some, or none of it on lease payments.

Yuzo

Thanks for all your help.

My current job is PAYE, so i am guessing there is just one section to add for mileage expense relief under the self assessment? and that will remove £3535 from last years PAYE tax and refund me 20% of that amount?

Bookworm105

Yuzo said:

Thanks for all your help.

My current job is PAYE, so i am guessing there is just one section to add for mileage expense relief under the self assessment? and that will remove £3535 from last years PAYE tax and refund me 20% of that amount?

please explain what £3535 comprises in relation to the 8ppm you have already been paid?
You have already received 8ppm tax free, don't double count!

For your tax relief bear in mind the HMRC approved rate for (fully) electric was:
9ppm for 6 April 23 - 31 Aug 23
10ppm for 1 Sep23 - 30 Nov 23
9ppm 1 Dec 23 to date 

so work out your claim on the correct dates Advisory fuel rates - GOV.UK (www.gov.uk)
you are claiming the difference between what you should have been paid at the approved rate and what you were paid tax free via company expenses.
you are not claiming 20% tax on x miles @ 9p on a tax return !

Grumpy_chap

Bookworm105 said:

Yuzo said:

Thanks for all your help.

My current job is PAYE, so i am guessing there is just one section to add for mileage expense relief under the self assessment? and that will remove £3535 from last years PAYE tax and refund me 20% of that amount?

please explain what £3535 comprises in relation to the 8ppm you have already been paid?
You have already received 8ppm tax free, don't double count!

For your tax relief bear in mind the HMRC approved rate for (fully) electric was:
9ppm for 6 April 23 - 31 Aug 23
10ppm for 1 Sep23 - 30 Nov 23
9ppm 1 Dec 23 to date 

so work out your claim on the correct dates Advisory fuel rates - GOV.UK (www.gov.uk)
you are claiming the difference between what you should have been paid at the approved rate and what you were paid tax free via company expenses.
you are not claiming 20% tax on x miles @ 9p on a tax return !

I don't believe that is correct.

The OP pays tax on the car allowance, so the mileage rates that can be paid without incurring a tax liability is 45 pence per mile (25 pence beyond 10k miles).
The OP has received 8 pence per mile from the employer.
The tax relief can be claimed on the difference between 8 pence per mile and 45 / 25 pence per mile.

[Deleted User]

Grumpy_chap said:

Bookworm105 said:

Yuzo said:

Thanks for all your help.

My current job is PAYE, so i am guessing there is just one section to add for mileage expense relief under the self assessment? and that will remove £3535 from last years PAYE tax and refund me 20% of that amount?

please explain what £3535 comprises in relation to the 8ppm you have already been paid?
You have already received 8ppm tax free, don't double count!

For your tax relief bear in mind the HMRC approved rate for (fully) electric was:
9ppm for 6 April 23 - 31 Aug 23
10ppm for 1 Sep23 - 30 Nov 23
9ppm 1 Dec 23 to date 

so work out your claim on the correct dates Advisory fuel rates - GOV.UK (www.gov.uk)
you are claiming the difference between what you should have been paid at the approved rate and what you were paid tax free via company expenses.
you are not claiming 20% tax on x miles @ 9p on a tax return !

I don't believe that is correct.

The OP pays tax on the car allowance, so the mileage rates that can be paid without incurring a tax liability is 45 pence per mile (25 pence beyond 10k miles).
The OP has received 8 pence per mile from the employer.
The tax relief can be claimed on the difference between 8 pence per mile and 45 / 25 pence per mile.

You are correct - I believe that bookworm was quoting approved mileage rates for electric COMPANY cars. 

https://www.driversnote.co.uk/blog/electric-car-mileage-rates-2024#:~:text=Mileage%20rates%20for%20privately%20owned%20electric%20cars,-If%20you%20drive&text=The%20HMRC%20electric%20car%20mileage,for%20the%20remaining%203%2C000%20miles.

Bookworm105

i stand corrected
yes 45/25 ppm rate for personal car (electric or not)
however, you are still claiming the difference between 8ppm and those rates via a tax return for the reasons stated 

Yuzo

Yes so my mileage was 10,091 .. I will be claiming 8p - 45p (Total 37p) on the first 10,000 miles and then 8p - 25p (Total 17p) on the 91 miles. Hopefully this will be easy enough to do on my self assessment when I get my UTR code.

Dazed_and_C0nfused

Yuzo said:

Yes so my mileage was 10,091 .. I will be claiming 8p - 45p (Total 37p) on the first 10,000 miles and then 8p - 25p (Total 17p) on the 91 miles. Hopefully this will be easy enough to do on my self assessment when I get my UTR code.

It's a single box you complete (for those expenses).

But remember you cannot claim expenses from HMRC.

You are claiming tax relief on the expenses.