P87 - confused!!!

Louise1875

I'm wondering if someone can help. This is probably a stupid question but hopefully someone can understand why I'm confused!

I'm currently filling in my P87 - I done one last year but I had only been in the job a few months so the claim wasn't much.

As I know have done a full year in my role the claim is higher.

What's confused me is the £2,500 threshold for the P87.
My claim as detailed below.

0.40 x 10000 = £4000
0.25 x 7456 = £1864

£5864 - £2813.92 (received from company) = £3050.08

I know £3050.08 is more than £2500 but I would only received 20% of this being £610.02.

What do HMRC base your claim on? The 20% or the initial value?

Any help greatly appreciated!

Louise1875

Can anyone help on the post above please?

suso

Louise1875 wrote: »

Can anyone help on the post above please?

HMRC would view that your claiming expenses over 2500 and require a Self Assessment form to be completed. (its the amount of expenses claimed, not the tax relief you would get)

your best bet is to call the tax office and say your expenses are over 2500 and they will send an internal SA1 and set you up in self assessment.

If you submit a p87 for over 2500 it will be returned and you set up in SA, so you might as well speed up the process.

flairville

Hi all!
i need some help, if anyone can oblige I'd be really grateful.
My company pay me 35p for every mile I do. I did 14,935 miles last year.
Am I entitled to tax relief??
Thankyou in advance,
Ben.

jennifernil

You can claim relief on 40ppm for 10k miles , then 25ppm for the rest. You need to work it out.

jennifernil

By my reckoning you have received 35p x 14935 = ££5227.25

You are entitled to 40p x 10000 = £4000 + 25p X 4935 = £ 1233.75 = £5233.75

So you are due tax relief on £6.50