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  • FIRST POST
    • Caroline291187
    • By Caroline291187 12th Apr 18, 4:31 PM
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    Caroline291187
    Mileage Tax Relief
    • #1
    • 12th Apr 18, 4:31 PM
    Mileage Tax Relief 12th Apr 18 at 4:31 PM
    Hi,

    Looking for some advice. I work for the NHS and for the last 9 years I leased a car through them. It wasnít a salary sacrifice scheme. I paid for the full cost of the lease, road tax, insurance and fuel costs. I was reinbursed for my fuel costs at a rate of 12p per mile.
    I have just recently been informed that I am able to claim tax relief through the p87 form. Is anyone in here able to confirm that this is true?
    Thanks in advance!
    Caroline
Page 1
    • BoGoF
    • By BoGoF 12th Apr 18, 4:46 PM
    • 3,358 Posts
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    BoGoF
    • #2
    • 12th Apr 18, 4:46 PM
    • #2
    • 12th Apr 18, 4:46 PM
    Was this shown as a benefit in kind - did you recieve a P11d. If so, what does it show?
    • Dazed and confused
    • By Dazed and confused 12th Apr 18, 5:25 PM
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    Dazed and confused
    • #3
    • 12th Apr 18, 5:25 PM
    • #3
    • 12th Apr 18, 5:25 PM
    I have just recently been informed that I am able to claim tax relief through the p87 form

    Who told you that and were they fully aware of the position with your car, which sounds like a company car (for tax purposes)?

    What tax relief are you expecting to claim?
    • Caroline291187
    • By Caroline291187 12th Apr 18, 5:57 PM
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    Caroline291187
    • #4
    • 12th Apr 18, 5:57 PM
    • #4
    • 12th Apr 18, 5:57 PM
    Yes it was benefit in kind. I donít think I have a p11d.
    It wasnít a company car - it was leased.
    I had been told I would be able to claim the tax relief between the 45p and 11p.
    Caroline
    • Dazed and confused
    • By Dazed and confused 12th Apr 18, 6:24 PM
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    Dazed and confused
    • #5
    • 12th Apr 18, 6:24 PM
    • #5
    • 12th Apr 18, 6:24 PM
    Are you sure it wasn't a company car? The 45p rate is for using your own car, not a company car.

    I had been told I would be able to claim the tax relief between the 45p and 11p.

    You claim tax on the difference between 45p and 11p (why has it changed from 12p?) so even if you are eligible to claim then you would get tax relief of 6.8p per mile (45p-11p = 34p x 20%).

    This assumes you are a basic rate payer, did less than 10,000 business miles and paid enough tax to be refunded.

    Was the car scheme similar to this https://www.swast.nhs.uk/Downloads/SWASFT%20Bulletin/Bulletin%20links/LeaseCarBooklet.pdf

    Overview
    The Trust Lease Car Scheme is designed to provide you and your family with
    competitively priced and trouble free motoring. Under the Scheme, you lease a car
    using the Trust's current lease car suppliers, normally for a period of three years.
    There is no deposit and costs are fixed for all elements for the duration of the lease.
    The car will be insured for yourself and up to four named drivers (assuming they are
    legally entitled to drive).
    At the end of the lease period you can return the car with no additional charge
    subject to the vehicle meeting the required return standards and having covered no
    more than the agreed contracted mileage. Employees will have the opportunity to
    make further savings by the use of a salary sacrifice scheme subject to their salary not
    being "sacrificed"; to a level below the national minimum wage. (The provision of a
    company car will make the employee liable to a car benefit tax charge based on the
    vehicle chosen.)
    • Caroline291187
    • By Caroline291187 12th Apr 18, 6:42 PM
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    Caroline291187
    • #6
    • 12th Apr 18, 6:42 PM
    • #6
    • 12th Apr 18, 6:42 PM
    Sorry my mistake I meant 12p.

    Yes it was a scheme similar to that.

    Yes I realise it would be relief on the difference - Iím just unsure if I am eligible.
    • BoGoF
    • By BoGoF 12th Apr 18, 7:11 PM
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    BoGoF
    • #7
    • 12th Apr 18, 7:11 PM
    • #7
    • 12th Apr 18, 7:11 PM
    Being leased doesn't mean it cant be treated as a company car.....hence why I asked what the P11d shows. If it was a benefit in kind you should have a P11d showing what the taxable benefit was.
    • Caroline291187
    • By Caroline291187 12th Apr 18, 7:13 PM
    • 7 Posts
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    Caroline291187
    • #8
    • 12th Apr 18, 7:13 PM
    • #8
    • 12th Apr 18, 7:13 PM
    I will need to try and find out about the p11d.
    On my tax form I!!!8217;m sure they listed it as being a company car - even though it was leased so there is a lot of confusion!
    • BoGoF
    • By BoGoF 12th Apr 18, 7:17 PM
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    BoGoF
    • #9
    • 12th Apr 18, 7:17 PM
    • #9
    • 12th Apr 18, 7:17 PM
    There is no confusion....it will be treated as a company car and the 12ppm you are getting will the maximum payable using the HMRC approved mileage rates for a company car. Nothing further you can claim I'm afraid.
    • Caroline291187
    • By Caroline291187 12th Apr 18, 7:19 PM
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    Caroline291187
    Iíve been on hold to HMRC and have asked them - they have told me to file a p87 form.
    • BoGoF
    • By BoGoF 12th Apr 18, 7:21 PM
    • 3,358 Posts
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    BoGoF
    Did you tell them you had a company car?
    • Caroline291187
    • By Caroline291187 12th Apr 18, 7:23 PM
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    Caroline291187
    I explained it was a leased car through my work.
    • BoGoF
    • By BoGoF 12th Apr 18, 7:25 PM
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    BoGoF
    Which as has been explained will be highly likely be considered a company car.
    • Caroline291187
    • By Caroline291187 12th Apr 18, 8:18 PM
    • 7 Posts
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    Caroline291187
    Possibly - but I have been advised to submit a P87. On checking the HMRC website it states company cars are eligible for the tax relief? So if I was classed as being a company car user then I would be eligible?
    • BoGoF
    • By BoGoF 12th Apr 18, 9:18 PM
    • 3,358 Posts
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    BoGoF
    No......the 12ppm would be your lot
    • 00ec25
    • By 00ec25 12th Apr 18, 9:28 PM
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    • 6,442 Thanks
    00ec25
    So if I was classed as being a company car user then I would be eligible?
    Originally posted by Caroline291187
    you would be entitled to claim at the Advisory Fuel Rate. That value depends on the engine size and type of fuel used. The rate also varies from time to time both up and down so you may be "in profit" if paid above the rate and thus liable to pay tax on that profit or "in debt" and able to claim tax relief on the difference between the rate and what you got.

    12ppm was and is currently the rate applicable to a diesel car >2,000cc, you may or may not therefore achieve a figure worth claiming (or tax you have to pay) if you do the sums

    if you have a petrol engine, 12ppm is too low and there is more scope:

    current rates:
    https://www.gov.uk/government/publications/advisory-fuel-rates/advisory-fuel-rates-from-1-march-2016

    historic rates:
    https://www.gov.uk/government/publications/advisory-fuel-rates/advisory-fuel-rates-1-september-2011-to-29-february-2016
    • antrobus
    • By antrobus 12th Apr 18, 10:13 PM
    • 15,865 Posts
    • 22,594 Thanks
    antrobus
    Possibly - but I have been advised to submit a P87. On checking the HMRC website it states company cars are eligible for the tax relief? So if I was classed as being a company car user then I would be eligible?
    Originally posted by Caroline291187
    The NHS does not do company cars. You probably have a car provided by NHS Fleet Solutions who do salary sacrifice cars. So it's your car.

    But you can claim mileage tax relief on your own car if you use it for work.

    https://www.gov.uk/tax-relief-for-employees/vehicles-you-use-for-work

    Relief is available at 45p a mile for the first 10,000 miles. The Trust pays you 12p a mile, so you get relief on the difference of 33p a mile. If you're a basic rate taxpayer you'll get back 6.6p a mile.
    • BoGoF
    • By BoGoF 12th Apr 18, 10:19 PM
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    BoGoF
    The NHS does do company cars.....ultimately they are making a car available to the employee, that is what creates s car benefit charge, leased or not.
    • dori2o
    • By dori2o 13th Apr 18, 9:03 AM
    • 7,674 Posts
    • 12,832 Thanks
    dori2o
    The benefit in kind charge applies in these cases mainly (but not in all cases) because the lease is provided at a preferential rate via an employer scheme. That rate will not be available to the general public. Therefore a BIK exists. When I worked at British Aerospace we had a similar deal with Rover dealerships.

    It will be treated as a company car for tax purposes and you will not be entitled to claim the 45p rate as this covers not just fuel but servicing/maintenance costs. You suffer none of these costs with company cars.

    Its likely the 12p rate is the maximum you can claim.

    When HMRC receive your P87 they will see the P11d/Company car details and allow the advisory rate only.

    If this is a salary sacrifice scheme tthen the rules will have changed from 6 April this year.

    See the Gov. uk website for further info as to whether this might affect your circumstances
    Last edited by dori2o; 13-04-2018 at 9:12 AM.
    To equate judgement and wisdom with occupation is at best . . . insulting.
    • sheramber
    • By sheramber 13th Apr 18, 6:39 PM
    • 5,025 Posts
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    sheramber
    The quoted link to the NHS bulletin advises it is treated as a company car
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