Mileage expenses at work
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Discussion

Eyersey1234

Original Poster:

3,085 posts

109 months

Thursday 30th November 2017
quotequote all
Hi guys. A question on behalf of Mrs eyersey1234. If your employer pays you mileage for using your car in the course of your job can you claim mileage off HMRC too? She keeps getting told different things by different people.

2 sMoKiN bArReLs

32,031 posts

265 months

Thursday 30th November 2017
quotequote all
If they pay less than the HMRC rates you can claim the difference is the gist I believe.

If it's for the full car (not just fuel) that's 45p per mile for first 10,000 miles, 25p thereafter.


2 sMoKiN bArReLs

32,031 posts

265 months

2 sMoKiN bArReLs

32,031 posts

265 months

Thursday 30th November 2017
quotequote all
Above is from employers' viewpoint, but you'll get the gist.

This is advice for employees

https://www.gov.uk/tax-relief-for-employees/how-to...

2 sMoKiN bArReLs

32,031 posts

265 months

Thursday 30th November 2017
quotequote all
Using your own vehicle
If you use your own vehicle for business, you may be able to claim ‘Mileage Allowance Relief’.

To work out how much tax relief you can claim, add up your business mileage for the tax year and multiply it by the approved mileage rates.

If your employer doesn’t pay you a mileage allowance you can claim the full approved amount of Mileage Allowance Relief.

If your employer pays you a mileage allowance but it is less than the approved amount, you can claim Mileage Allowance Relief on the difference.

If your employer pays you more than the approved amount you’ll have to pay tax on the difference.

PorkInsider

6,608 posts

171 months

Thursday 30th November 2017
quotequote all
Yep, you can claim back the tax on the difference between the rate paid and the HMRC rate.

For example, if you do 1,000 work miles over the year in your own car, and your employer pays you 25p per mile, you can claim back the tax you’ve paid on 1,000 x 20p.

So if you pay tax at 40% you can get back £80 (40% of £200)

youngricharduk

238 posts

115 months

Thursday 30th November 2017
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Yeah what everybody above said is correct just go to gov.uk and search for P87 send it in for the tax years needed, the furthest you can claim back too is the 13/14 tax year. Just remember it's only 'tax relief' on the amount claimed and not the actual expense, so 20% or 40% depending on your Wife's tax band. The likely hood is though the employer is already giving her the 45p per mile approved rate and nothing further is due.

Eyersey1234

Original Poster:

3,085 posts

109 months

Thursday 30th November 2017
quotequote all
Thanks guys

mr rusty

218 posts

122 months

Thursday 30th November 2017
quotequote all
you can also claim if you get a car allowance rather than a company car, and they pay you fuel for business miles at the 10/12/14p rate or whatever it is. You can then get a tax allowance between that and the 45/25p rate. I know because my accountant did just that for me.

TwigtheWonderkid

49,125 posts

180 months

Friday 1st December 2017
quotequote all
PorkInsider said:
Yep, you can claim back the tax on the difference between the rate paid and the HMRC rate.

For example, if you do 1,000 work miles over the year in your own car, and your employer pays you 25p per mile, you can claim back the tax you’ve paid on 1,000 x 20p.

So if you pay tax at 40% you can get back £80 (40% of £200)
^^^THIS.

You can only claim the tax on the difference between what they pay and HMRC rate, not the whole difference.

poo at Paul's

14,616 posts

205 months

Friday 1st December 2017
quotequote all
Of course it also means she will need to do a self assessment tax return, which is a pain up the arse if it is only a few quid. I know some people who don't bother due to this.

Pegscratch

1,872 posts

138 months

Friday 1st December 2017
quotequote all
poo at Paul's said:
Of course it also means she will need to do a self assessment tax return, which is a pain up the arse if it is only a few quid. I know some people who don't bother due to this.
No it doesn't. It only means you have to do it if you exceed a certain threshold. The form you want is P87 if your 'allowable expenses' do not exceed £2,500.

I guess that's down to a generational difference as well, not just being a bit pig-headed...