Experiences of Claiming tax relief on business miles

[torqueofthedevil]

Not bothered doing it yet as i know what a nightmare it can be to sort stuff like that out.

I've heard people have varying experiences from receiving money straight away (and seemingly large amounts) and others taking 6 months and not getting much.

Also if you are eligiable to tax relief on more than £2500 you need to do a self assessment...which doesnt sound appealing. In fact i think a lot of people actually claim less than they are due, just to avoid the self assessment....so if your fuel is paid for by the company there's not much point trying to get an economical car in that case.

If i knew that doing the self assessment would be problem free then i would actually go for a 50+ mpg car, then i would be due a load of money. But it just puts me off - so i think i'll just get an evo instead!

[CDP]

Fuel consumption doesn't make any difference it's 40ppm for the first 10,000 miles and 25 thereafter. On a lot of cars the 25ppm won't even cover fuel. It's been that rate for years despite increases in fuel price and duty. I can't see it going up much either.

[torqueofthedevil]

CDP said:

Fuel consumption doesn't make any difference it's 40ppm for the first 10,000 miles and 25 thereafter. On a lot of cars the 25ppm won't even cover fuel. It's been that rate for years despite increases in fuel price and duty. I can't see it going up much either.

Fuel consumption does matter if you have a fuel card:

10,000 miles = £4000
If you have been given £3000 on a fuel card

Tax relief on £1000

20% tax bracket = £200 back

---

10,000 miles = £4000
If you have only been given £1000 on fuel card

Tax relief on £3000

20% tax bracket = £600

[blueg33]

If you are on PAYE a self assessment form is a doddle that takes 15 mins, unless you have lots of investments etc.

I claim business miles via self assessment every year and have had no problems what so ever. I do have a record of the mileage though as does our accounts department so it can all be backed up if asked.

[Blown2CV]

p87 it and see. You can put in last 6 years, your records permitting. If you are eligible to over £2500 then pay an accountant £150 to do the tax return paperwork for you. Clearly it would be worth it. Not sure what the problem is.

[AllNines]

I've recently done this - just filled in the forms for the previous three tax years since opting out, and the tax man duly sent me a cheque about a month later and has adjusted my tax code to reflect my estimated business use.
I await to see whether they ask me to self assess come the end of the year.

[Sideways Rich]

Thanks for the reminder I need to do my SA and include mileage.

[Matt UK]

blueg33 said:

If you are on PAYE a self assessment form is a doddle

This

[Muzzer]

I've done it

Very easy - fill out P87, send off, receive money

The first year I did it, they asked for my records, a copy of my contract and loads of other stuff. Due to work pressures, I didn't get around to providing all that.

The next year, I sent all my mileage records with the application. They then just adjusted my tax code and sent me a couple of cheques.

Same this year.

[joebongo]

Are then forever more into self-assessment land if you do this once?

[Matt UK]

joebongo said:

Are then forever more into self-assessment land if you do this once?

In my expreience, yes.

The only thing I'd say is that they don't like giving cheques at year-end, they prefer to build into the tax code.

Seeing as mine is now built in, if I claim less than last year they will expect a cheque from me.

[Blown2CV]

joebongo said:

Are then forever more into self-assessment land if you do this once?

no