Bit new to all this but in simple terms, the job I started 9 months ago pays 27p per mile between sites. My understanding is that there is some way of claiming the difference between this and the tax mans maximum (45p?)
Can anyone point me in the right direction to start? Is it worth the hassle and paperwork?
TIA.
You'll need to do a tax return, it's in the "Employment" section somewhere. Not a big hassle and worth it if you do lots of miles.
Have not done it for a while, but last time it was via the P11d Benefit and Expenses form (which your employer fills out) - in the same way if you get paid more, you declare it get taxed on the difference. Then I presume the HMRC get this info twice when you do your tax return.
If you are a 40% tax payer and you drive the full 10,000 miles (allowable at the 45p rate), then it probably is.
I work it out as a £720 saving, but I have been known to be wrong.
edit: if you do more than 10,000 business miles then the rate drops to 25p
Cheers guys. I thought there was a simple form just for business expenses below a certain value. It's only a couple of thousand miles.
Onzadog - MemberCheers guys. I thought there was a simple form just for business expenses below a certain value. It's only a couple of thousand miles.
£144 according to my calcs.
Does P87 ring any bells with anyone? Just stumbled across one and it looks like it might fit.
Yes - that's the form for mileage allowance relief.
http://www.hmrc.gov.uk/manuals/eimanual/eim31330.htm
You can use this instead of doing self assessment etc
when my wife was doing miles that were 'under' paid, we filled it in on the employment section, under additional claims - can't recall exact figures or numbers. likewise that's where you declare that you've been over paid for miles...
Cheers all. Assuming they send a cheque, what can I get for my bike with the £107.64?
Just seen this and its prompted me to do mine. People had always mentioned it but been vague about what the form actually was. Hopefully I will be getting some money back from the Tax man soon too!
Do I get a cut for motivating you, and finding the P87?
Don't forget you can back date a few years as well (iirc 6 or 7?). Worth checking and worth doing 🙂
45p per mile for the first 10,000 then 25p per mile.
If your company pays you less you may claim tax relief on the difference.
So if you get paid 10p a mile, you can claim relief on 35p per mile for the first 10,000 then 15p on the rest. If you pay 40% tax you will get back 40% of that figure, I think.
I claimed relief on £6K for the difference between what I get and the 45p
No cheque for me, they adjusted my code instead