Mileage Tax relief help

Baggi0_

Hi everyone,

I'm looking on claiming tax relief for the first time as I now use my own car for driving about the county visually checking and reading utility meters. 

I get some paid some mileage back so I am only claiming the difference so believe I will be claiming for tax relief but i need some help on a few things.

On the HMRC site it says

When you claim, you must send HM Revenue and Customs (HMRC) copies of your mileage logs. These logs must include::

• the reason for every journey
• the postcode for the start point of every journey
• the postcode for the end point of every journey

So the first question is the actually tracking of it.  Would something simple like this suffice to track it?


So If the above picture is ok for the tracking, for the start and end destination would that be just from home to home as I have no fixed workplace and am in different locations every day?

The reason for Journey?  Would I just be putting in something like "Visiting customers to visually inspect meters"  for every entry?

Do I need to send them proof from my employee that I have no fixed workplace and proof of the amount they pay me back per mile?

Lastly, would anyone who claims this successfully every year be willing to share what they use to track all this if the one in the image doesn't look sufficient? 

Thanks

Bookworm105

I appreciate you appear to show a quote but where did that come from? Never heard of having to send a mileage log to HMRC and start and end address would refer to the single journey, not a round trip for the reason you state, it would be the same postcode!

The log is merely a means of recording why you went where you went and (the bit you are missing) the point at which the cumulative to date pops over the 10,000 mile threshold so that you claim the correct monetary value at 45p reduced to 25p for that specific journey and then 25p for all those after it 

Grumpy_chap

Baggi0_ said:

Hi everyone,

I'm looking on claiming tax relief for the first time as I now use my own car for driving about the county visually checking and reading utility meters. 

I get some paid some mileage back so I am only claiming the difference so believe I will be claiming for tax relief but i need some help on a few things.

On the HMRC site it says

When you claim, you must send HM Revenue and Customs (HMRC) copies of your mileage logs. These logs must include::

• the reason for every journey
• the postcode for the start point of every journey
• the postcode for the end point of every journey

So the first question is the actually tracking of it.  Would something simple like this suffice to track it?


So If the above picture is ok for the tracking, for the start and end destination would that be just from home to home as I have no fixed workplace and am in different locations every day?

The reason for Journey?  Would I just be putting in something like "Visiting customers to visually inspect meters"  for every entry?

Do I need to send them proof from my employee that I have no fixed workplace and proof of the amount they pay me back per mile?

Lastly, would anyone who claims this successfully every year be willing to share what they use to track all this if the one in the image doesn't look sufficient? 

Thanks

That form of record keeping looks sufficient.  I use something very similar.
As @Bookworm105 said, you need to note the total in the tax year as above or below 10k miles as the rate changes, plus I doubt that HMRC will actually request that full detail to be shared - the claim will be a statement of what you are claiming.

The other piece of information you need to add is what has been reimbursed by the employer.  So, your claim will summarise to something like the following once the tax year has been completed:
 - Total business miles 11,164
 - First 10k at 45 pence = £4,500
 - Final 1,164 miles at 25 pence = £291
 - Total allowable expenses = £4,791
 - Mileage reimbursed by employer 11,164 miles at (say) 15 pence = £1,675
 - Expenses claimed via tax return £3,116

HMRC will then calculate the tax recoverable against that based upon your marginal rate.  For a basic rate 20% income tax payer, the reduction in tax liability would come out to £623. 

I have used assumed figures in the above, so the correct mileage and correct rate reimbursed by the employer needs to be assessed.  (But the 45 pence and 25 pence rules are, I believe, universal within UK.)
Other tax rates are available.

If you don't do self assessment tax return, there is a simple claim process available but I am not familiar.

Dazed_and_C0nfused

Bookworm105 said:

I appreciate you appear to show a quote but where did that come from? Never heard of having to send a mileage log to HMRC and start and end address would refer to the single journey, not a round trip for the reason you state, it would be the same postcode!

The log is merely a means of recording why you went where you went and (the bit you are missing) the point at which the cumulative to date pops over the 10,000 mile threshold so that you claim the correct monetary value at 45p reduced to 25p for that specific journey and then 25p for all those after it 

It seems to be a new thing, specific to people not completing a tax return.

https://www.gov.uk/guidance/send-an-income-tax-relief-claim-for-job-expenses-by-post-or-phone

Nomunnofun1

Dazed_and_C0nfused said:

Bookworm105 said:

I appreciate you appear to show a quote but where did that come from? Never heard of having to send a mileage log to HMRC and start and end address would refer to the single journey, not a round trip for the reason you state, it would be the same postcode!

The log is merely a means of recording why you went where you went and (the bit you are missing) the point at which the cumulative to date pops over the 10,000 mile threshold so that you claim the correct monetary value at 45p reduced to 25p for that specific journey and then 25p for all those after it 

It seems to be a new thing, specific to people not completing a tax return.

https://www.gov.uk/guidance/send-an-income-tax-relief-claim-for-job-expenses-by-post-or-phone

Possibly this bit:

1. 14 October 2024

   The guidance notes for form P87 and information about how to claim, including the evidence you will need to provide has been updated.
   

Grumpy_chap

Oh, the new form does seem to require a lot more evidence.
Though, I note it also only appears to require the mileage log to be submitted if nothing has been reimbursed by the employer:

"Do not send any paperwork with this form unless: • you are claiming fuel costs in a company car • you are claiming mileage expenses for using your own vehicle for business journeys and your employer has not reimbursed any of the cost"

This extra evidence probably is a good thing as it will help to prevent incorrect applications (I am particularly thinking of the spurious claims that have been submitted by some of the claims management companies who recover the tax, take their fee and then run, only passing the reduced amount to the individual who then becomes liable for the whole amount of erroneously claimed tax when HMRC catch up).

Bookworm105

Dazed_and_C0nfused said:

Bookworm105 said:

I appreciate you appear to show a quote but where did that come from? Never heard of having to send a mileage log to HMRC and start and end address would refer to the single journey, not a round trip for the reason you state, it would be the same postcode!

The log is merely a means of recording why you went where you went and (the bit you are missing) the point at which the cumulative to date pops over the 10,000 mile threshold so that you claim the correct monetary value at 45p reduced to 25p for that specific journey and then 25p for all those after it 

It seems to be a new thing, specific to people not completing a tax return.

https://www.gov.uk/guidance/send-an-income-tax-relief-claim-for-job-expenses-by-post-or-phone

argh yes. I have not looked at P87 for a long time and did not feel the need to link to it on my reply so was not aware of that change. Thanks

Baggi0_

Thanks for the replies these help a lot.

@Bookworm105 I got the info from "gov.uk/tax-relief-for-employees/vehicles-you-use-for-work" under the "how to claim" part.  I'm not allowed to post a link to it as I've only just joined.

I'll use that log I posted then and add the part @Grumpy_chap posted summarising it all.

I have partly filled in the Tax form online and it does calculate the rates from the mileage you enter and asks how much you have received in mileage allowance payments but I'll add it to the evidence as I have to send in as well to be sure.

Do I need to wait until after April 5th to send it in and if they reject it do they tell you why and can you re-apply?

sheramber

Baggi0_ said:

Thanks for the replies these help a lot.

@Bookworm105 I got the info from "gov.uk/tax-relief-for-employees/vehicles-you-use-for-work" under the "how to claim" part.  I'm not allowed to post a link to it as I've only just joined.

I'll use that log I posted then and add the part @Grumpy_chap posted summarising it all.

I have partly filled in the Tax form online and it does calculate the rates from the mileage you enter and asks how much you have received in mileage allowance payments but I'll add it to the evidence as I have to send in as well to be sure.

Do I need to wait until after April 5th to send it in and if they reject it do they tell you why and can you re-apply?

If you are claiming for 24/25 you will not know the final figure until  the end of the tax year on 5April.

Are you claiming for 23/24?

Baggi0_

sheramber said:

If you are claiming for 24/25 you will not know the final figure until  the end of the tax year on 5April.

Are you claiming for 23/24?

I'm claiming for 24/25

Dazed_and_C0nfused

Baggi0_ said:

sheramber said:

If you are claiming for 24/25 you will not know the final figure until  the end of the tax year on 5April.

Are you claiming for 23/24?

I'm claiming for 24/25

Given it is now March why would you want to have to all this twice 🤔

Just wait until you have all the details to 5 April and then submit your claim.  Assuming it is for no more than £2,500 of expenses.