Mileage Tax relief help

Bookworm105

QrizB said:

Nomunnofun1 said:

No - you include all mileage and reimbursement.

How would HMRC know that you receive 25p per mile over 10000 and not, for example, 10p or 45p?

Do employers tell HMRC how much they've paid in mileage expenses for each employee? If they do, HMRC will know if you're fiddling the numbers!

if the employer has paid expenses outside of the payroll (so tax not automatically dealt with where applicable) then it is a legal duty for the employer to submit a P11D form to HMRC each year listing payments they made. So yes, if you try and be funny, you would (eventually) be spotted 
Expenses and benefits for employers: Reporting and paying - GOV.UK

Baggi0_

Nomunnofun1 said:

Baggi0_ said:

Another question. 

It's looking like I'm going to be over 10,000 miles by April 5th and seeing as I'm getting over what would be the reduced rate of 25p from my employer already, should I just stop recording my mileages in my log after 10,000 miles or carry on for transparency but not calculate that into it when I submit it and pay the tax that it says in the online form?

If your employer pays you more than the approved amount of Mileage Allowance Relief you’ll have to pay tax on the difference.

Is omitting it to not pay the tax even legal or is this common practice to stop at 10,000 miles?

No - you include all mileage and reimbursement. 

How would HMRC know that you receive 25p per mile over 10000 and not, for example, 10p or 45p?

There's been a bit of confusion here,  In the online form i filled out what the employer pays me and I get 30p per mile whatever the mileage I do so that doesn't change.  So i am claiming for the difference up to 10000 miles, I was just unsure of what happens at the HMRCs lower rate after that as i already get over it and mainly how people go about claiming it.

Bookworm105 said:

Baggi0_ said:

Another question. 

It's looking like I'm going to be over 10,000 miles by April 5th and seeing as I'm getting over what would be the reduced rate of 25p from my employer already, should I just stop recording my mileages in my log after 10,000 miles or carry on for transparency but not calculate that into it when I submit it and pay the tax that it says in the online form?

If your employer pays you more than the approved amount of Mileage Allowance Relief you’ll have to pay tax on the difference.

Is omitting it to not pay the tax even legal or is this common practice to stop at 10,000 miles?

do you mean not claim any mileage over 10,000 from your employer?
or do you mean take the money from the employer but not declare it to HMRC ?

if your employer pays >25ppm after 10,000 miles then they are i) a very generous employer and ii) you would have a tax liability on that money which would of course net off with your tax refund due on the first 10,000 miles leaving you with a smaller tax refund.

The latter, I thought I read here previously people stopping at 10'000 miles but I don't want to do anything illegal and want to do everything above board so was just wanting clarification on it.

sheramber

Your claim for all your mileage at the appropriate rate/s.= X

Your employer pays you = Y

Your tax relief is X- Y. 

Bookworm105

Baggi0_ said:

The latter, I thought I read here previously people stopping at 10'000 miles but I don't want to do anything illegal and want to do everything above board so was just wanting clarification on it.

it is not illegal not to claim an expense, it is however rather counter productive since tax is not 100% so you will obviously be better off by carrying on to claim over 10,000 miles!

assuming you work a company that has at least semi competent payroll staff then they are required to report the "excess" mileage rate payment direct to HMRC. They should also give you a P11D form confirming what they have declared on your behalf.
If your company pays expenses as part of its monthly payroll then the tax due will be collected automatically as part of your payslip. In your case that means the extra you are entitled to for 30p versus 45p will be netted off with the excess you receive over 10k on 30p v 25p,
 If they don't, then HMRC will process the P11D after tax year end and adjust your tax code for the following year (or less likely, send you a bill).

Expenses and benefits: business travel mileage for employees' own vehicles: Rules for tax - GOV.UK

Employment expenses: using your own car | Low Incomes Tax Reform Group

Tax implications of paying mileage payments of more than the approved amount - Bowes Brooks

Tax on Going Over the Approved Mileage Rate

Grumpy_chap

Baggi0_ said:

There's been a bit of confusion here,  In the online form i filled out what the employer pays me and I get 30p per mile whatever the mileage I do so that doesn't change.  So i am claiming for the difference up to 10000 miles, I was just unsure of what happens at the HMRCs lower rate after that as i already get over it and mainly how people go about claiming it.

You don't split things quite like that.
You submit a full claim for the full mileage over the year (or the tax relief on that mileage).

Consider that you do 11k miles.
That is 11k paid to you at 30 pence per mile = £3.3k

The available tax relief is 10k miles at 45 pence per mile = £4.5k
PLUS 1k miles at 25 pence per mile = £0.25k
Total tax relief available = £4.75k

Less the actual mileage paid (4.75 - 3.3) = £1.45k

The tax relief means that a basic rate (20% = England) tax payer will pay £290 less tax.

Baggi0_

Thanks for all your help guys, you have given me a lot of great information and I think I have all the info I need now.

I'll be back in a few of weeks with an update to tell you if my claim gets accepted or rejected