P87 Fuel Card Related Tax Claim

stevehill

Hi Money Experts,

Can someone tell me if I am calculating this correctly please?

I understand that I can reclaim tax from the inland Revenue related to Fuel Card Expenses using a P87 form.

First I have disregarded any income from my Car Allowance as this is treated as taxable income anyway.

The calculation I have then been told to apply is as follows;

First I need to work out the total amount I can claim which is my first 10000 business miles X 40p plus any business miles above 10000 X 25p
Lets say I have business mileage of 10000 to keep is easy so my total claimable amount is £4000.

Then I need to work out how much cost my fuel card has accumulated using the amount on my P11D form;
On my P11D, the amount I believe relates to my Fuel Card is in section M - Other Items as Private Mileage. There are no other entries on my P11D form but IS THIS THE CORRECT VALUE TO USE?
Assuming this is the correct value I then apply the following calculation. I use the amount related to the fuel card on my P11D form multiplied by my TOTAL mileage for the year divided by my BUSINESS mileage for the year. Lets say this calculation is £500 X 20000 / 10000. This means the benefit I have had from my Fuel card is £1000.

Then I take the £1000 benefit from the £4000 total allowable claim to give me a claimable amount of £3000

Please tell me if I have done this correctly .....

skanger

No that's wrong, the benifit from the fuel card will be declared on your P11D by your employer, they will declare the total cash benefit i.e. all that you have spent on in over the year.

Your claim on the P87 is exactly as you describe, apart from the piece around the fuel card, i.e. if you have done 5,000 miles claim id 5000x0.40 or £2000.

HTH

stevehill

Ah looks like my company haven't filled out the P11D quite right. It seems they have only put the cost related to my Private Mileage (calculated by the Business & Private mileages I gave them)

Not a problem though, I can still work out the total cash benefit from that;
I use the amount related to the fuel card on my P11D form multiplied by my TOTAL mileage for the year divided by my PRIVATE mileage for the year.

Thanks for your help,
SH