P87 question

fastwaffle

Hi everyone

I have a few P87 questions. I have done some searching (to avoid repetitive questions) but haven't quite found anyone posting exactly the same situation as me, so hopefully someone can shed some light:

1) I receive a company car allowance from my employer as a taxable monthly income through the payroll
2) I am in receipt of a company fuel card on which I can purchase all my fuel
3) I must however pay back all private fuel monthly (doesn't always happen monthly but supposed to) at published rates for my engine size

I've seen people in similar situations, but usually they are saying they get all their fuel paid on a fuel card whereas I pay back private mileage

Am I entitled to claim tax relief on my business mileage via a P87 form?

If so, the following additional questions come to mind:

4) I can work out the business mileage and multiply by 40p for the first 10k miles and 25p for anything above, but my problem comes when I try to subtract what I "received" from the company. Technically they paid me nothing (allowance wise) for my business mileage, but they did pay the cost of the fuel. So what do I subtract from the claim in respect of what I received already?!

5) Finally I've seen discussion around what is and isn't business mileage and I've heard people saying that travelling to a company site constitutes commuting and not business mileage, however I feel I'm in a different position.

I'm 100% field based and have no set location to work from (my contract of employment has my home address as my place of work). However I do often visit company branches around the country. I would hope that these can still be claimed as business mileage as I'm not commuting at all.

Thanks in advance

fengirl_2

The tax allowance you are claiming for the use of your car includes everything from fuel to depreciation to repairs. Therefore the amount you are receiving for fuel needs to be subtracted.
As you are based at home, as you state, you are not commuting to a regular site each day.

fastwaffle

Thanks for the reply

You say that the amount I'm receiving for fuel needs to be subtracted and I agree, but as they pay for the fuel on a fuel card, it's not easy to determine exactly how much I received already for the mileage.

It's not as easy as if I paid for all the fuel myself and then claimed back the business mileage portion from them at an agreed rate - like 12p per mile or something. In that case it would be easy to work out what I'd already received.

fengirl_2

Surely their fuel account breaks down between signatories? They should know how much you personally have spent on fuel from these records.

Stevieboy73

I am in near enough exactly the same position, with the following steps:

1 - The total cost of fuel is recorded via the fuel card for the month.
2 - The total miles driven that month is declared to the company
3 - The cost per mile for that month is then worked out
4 - The amount of personal mileage is also declared
5 - The cost of the personal mileage is worked out, using the cost per mile from step 3
6 - The cost of personal mileage is immediately deducted from my monthly salary

So, I find it hard to understand why I cannot claim the 40p per mile tax relief from the IR?
If not, then what calculations do I have to make to put the correct claim in?

I wish there was more information on this, surely there are alot of people in similar situations?

jay72-c

Please can someone give a few pointers.
I have a private car that i use for buisness milage. I Completed the P87 last year as I do not get anything apart from a fuel card from my employer. My P11d is for both private and buisness milage. i claimed the full 40p per mile from the goverment however the value that i claimed did not get paid in full. Why is this ?? or am I missing the piont??

Please help

kitty1801

Stevieboy73 wrote: »

I am in near enough exactly the same position, with the following steps:

1 - The total cost of fuel is recorded via the fuel card for the month.
2 - The total miles driven that month is declared to the company
3 - The cost per mile for that month is then worked out
4 - The amount of personal mileage is also declared
5 - The cost of the personal mileage is worked out, using the cost per mile from step 3
6 - The cost of personal mileage is immediately deducted from my monthly salary

So, I find it hard to understand why I cannot claim the 40p per mile tax relief from the IR?
If not, then what calculations do I have to make to put the correct claim in?

I wish there was more information on this, surely there are alot of people in similar situations?

You can claim the tax relief on 40p/25p per mile from HMRC but you MUST state on the claim what your employer already pays for (fuel card minus anything you paid back).

kitty1801

jay72-c wrote: »

Please can someone give a few pointers.
I have a private car that i use for buisness milage. I Completed the P87 last year as I do not get anything apart from a fuel card from my employer. My P11d is for both private and buisness milage. i claimed the full 40p per mile from the goverment however the value that i claimed did not get paid in full. Why is this ?? or am I missing the piont??

Please help

You are only claiming tax back on the 40p/25p per mile. HMRC only took income tax from you, so all they can repay is income tax. They do not pay for your expenses. This is possibly why the repayment is less than you thought but you should have had a calculation showing you how they worked it out. Have a look over it & if still unsure provide the figures here...