Never claimed back business milage from the tax Girl

Cahoot_hater

I worked for a company from November 2006 to March 31 2008 during that time I have claimed business milage,every month which my employer paid 17P for every mile I did, every month I use to clock up a 1000 miles which I got paid for e very month but was taxed at the same time with my salary. Can I claim some of the tax back which I paid. from November 2006 untill march 08?

On the P87 form - under Calcclulating milage allowance relief : it notes that I have to multiply my first 10,000 by 40p but I was only getting 17p, should I just multiply my first 10,000 by 40p?

dori2o

multiply the first 10k by 40p, then the remainder by 25p.

add together the amounts at 40p and 25 p, this gives you your total mileage allowance at the revenue standard rate.

then take away the amount your employer has paid you in total.

this leaves you with the amount you wish to claim in respect of mileage relief.

Cahoot_hater

dori2o wrote: »

multiply the first 10k by 40p, then the remainder by 25p.

add together the amounts at 40p and 25 p, this gives you your total mileage allowance at the revenue standard rate.

then take away the amount your employer has paid you in total.

this leaves you with the amount you wish to claim in respect of mileage relief.

Thanks for your reply dori much appreciated m8 :beer:, I have worked out how much I should get back, I just need someone to check if I have done it right:

Total milage I have clocked from 2006 to 2008 is 16, 727.88

for tax year 2006 2007 i have worked out as follows:

4228.50 miles x 0.40p = 1691.40
employer contribution = 668.81

claim amount = 1022.59

For tax year 2007 - 2008 -

A - 10,000 * 0.40p = 4000

B- 2499.38 * 25p = 624.85

Total amount = a +b = 4 624.85

Employer contribution £2124.89

claim amount = 2 499.95

Is this right ? also once I filled out the p87 do I have to send this to the tax office that my employer is registered with.

This is my first time I'm filling out a p87 so I'm not to sure about all of this.

longforgotten

If someone is re-imbursed for business mileage up to 40p per mile, giving in paperwork showing miles done etc, it is not taxed. It is purely a re-imbursement to the employee, not taxable pay.

So are your sure you were taxed on the mileage money you were paid ? Just because it is showing on your payslip it does not mean you have been taxed on it.

Employees get taxed if they are given a mileage/fuel allowance for which there is no back up information.

Cahoot_hater

longforgotten wrote: »

If someone is re-imbursed for business mileage up to 40p per mile, giving in paperwork showing miles done etc, it is not taxed. It is purely a re-imbursement to the employee, not taxable pay.

So are your sure you were taxed on the mileage money you were paid ? Just because it is showing on your payslip it does not mean you have been taxed on it.

Employees get taxed if they are given a mileage/fuel allowance for which there is no back up information.

I was taxed on the millage because I remember fiiling out my millage claim on a computer at work where i simply enter the millage covered for the month and it worked out how much I should get in my pay, it also deduced the tax from it. My employer also stated the millage paid is taxable. I was also getting a car allowance of £250 every month which was again taxed.

Michael_T_H_Onion

Cahoot_hater wrote: »

I was taxed on the millage because I remember fiiling out my millage claim on a computer at work where i simply enter the millage covered for the month and it worked out how much I should get in my pay, it also deduced the tax from it. My employer also stated the millage paid is taxable.

If the mileage expense you claimed by filling in the computer form at work was for business mileage, it should not have been subject to income tax. You should check your payslips or any other relevant documents to be absolutely certain how the mileage expenses were paid to you and whether income tax was deducted because it would be highly unusual.

Did you ever submit fuel receipts to your employer?

Did your employer ever reimburse non-business mileage?

Michael T H Onion

Cahoot_hater

Michael_T_H_Onion wrote: »

If the mileage expense you claimed by filling in the computer form at work was for business mileage, it should not have been subject to income tax. You should check your payslips or any other relevant documents to be absolutely certain how the mileage expenses were paid to you and whether income tax was deducted because it would be highly unusual.

Did you ever submit fuel receipts to your employer?

Did your employer ever reimburse non-business mileage?

Michael T H Onion

My employer did not reimburse me for non-business mileage only pure business mileage, I did not have to submit any fuel recipts to them because I logged all the mileage that I did. I work for a construction company where I have to travel to a temporary place of work, Where I get my mileage paid for but only 17p per mile and not 40p. Think will send of my forms tomorrow and see what happens.

Thanks for your reply guys much appreciated.

jimmo

Sorry to but in but I don’t think you’ve really got it yet.
The basic principle is that you are entitled to tax relief @ 40ppm for business travel undertaken in your own car. If your employer pays you 17ppm as reimbursed expenses he pays you that tax free and you effectively temper your tax relief claim down to (40 - 17) 23ppm.
If your employer pays you 17ppm but then deducts tax from the payment then, for tax purposes, it is not a reimbursement but an addition to your taxable income. You can them claim the full 40ppm in tax relief.
What worries me is that in my very brief days in the construction industry (labourer on a building site) the definition of a temporary place of work was very different to the taxman’s definition.
I can’t help the feeling that your employer got it right by paying you a mileage allowance in accordance with construction industry practice but taxing it because, for tax purposes, it was normal commuting.
At this stage, ask yourself one simple question. How many temporary places of work did you go to?
If your answer is 1 then, for tax purposes, it certainly was not a temporary place of work. Your journeys were normal commuting and no tax relief is due.