Business Mileage Tax Relief

[anonymous-user]

Morning all, have done a bit of reading on this and can’t seem to find an answer. I am about to go and fill out the form for claiming tax relief on business mileage. My employer pays 30p/mile so I would be claiming the additional 15p, should only be a few hundred quid for the last few years of travelling but every little helps.

My query is this: my employer deducts my usual commuting mileage (130) from any mileage claim and then pays the 30p/mile on the rest. E.g. if I did a round trip of 200 miles I’d only be able to claim 70 miles. Is it the same for the tax relief where I’d only be able to claim for 70 miles or would I be able to get 70 @ 15p and 130 @ 45p? Obviously no problem if I can’t but would make a sizeable difference so thought it best to check!

Our claims system shows the following in a table, for example:

Total mileage: 200
Mileage deduction: 130
70 miles @ 30p = £21.00

Any help would be appreciated.

[bogie]

yes....you cant claim for home to normal place of work, so you get relief on the 70 miles

[anonymous-user]

bogie said:

yes....you cant claim for home to normal place of work, so you get relief on the 70 miles

I should clarify, this is for trips where I don't go to my normal place of work, i.e. 100 miles from home to alternative location and then back again, not a commute to work and then 70 miles of business travel.

[anonymous-user]

Jbeale96 said:

I should clarify, this is for trips where I don't go to my normal place of work, i.e. 100 miles from home to alternative location and then back again, not a commute to work and then 70 miles of business travel.

so the employer is saying you would have done 130 miles to get to the usual place of work, so it is only paying you for the miles you did over and above what would have been your normal commute?

you may well be allowed the relief based on the 'journey to a temporary workplace' rules

there are sufficient examples here to demonstrate

https://www.gov.uk/hmrc-internal-manuals/employmen...

Edited by anonymous-user on Monday 20th January 10:19

[anonymous-user]

JPJPJP said:

so the employer is saying you would have done 130 miles to get to the usual place of work, so it is only paying you for the miles you did over and above what would have been your normal commute?

you may well be allowed the relief based on the 'journey to a temporary workplace' rules

there are sufficient examples here to demonstrate

https://www.gov.uk/hmrc-internal-manuals/employmen...

Edited by JPJPJP on Monday 20th January 10:19

That's correct, thank you - looks like a combination of examples 1 and 4 are what I was looking for.

[anonymous-user]

In fact, having started with the form they ask for "total business miles travelled" and "amount (£) reimbursed by employer" so by filling those in accurately then it does indeed look like I can claim for the total number of miles travelled, for journeys which are not ordinary or substantially ordinary commuting (which none that I am claiming are). Happy days!

[alistair1234]

Sorry about the thread highjack, but it seems like the OP has answered their original question.

My employer pays 11p, can I claim the remaining 34p? I receive a car allowance if that makes any difference.

If so, what do I need to provide? Copies of my expense forms? Receipts for fuel, if so, how many what value? I did around 5,000 business miles last year.

Oh an also, i work from home so I think i claim all miles?

[interstellar]

Yes you can.

You need to speak to hmrc to file a claim or I use an accountant to do mine.

If you are home based you can claim it all but HMRC will be likely to see your contract that states your normal place of work is at home.

I had to send a copy mine to them to be accepted.

[Edinburger]

I thought you only claimed basic rate tax relief on the difference?

So using the OP's example: his employer pays £0.30 so he'd claim 20% of the £0.15 difference, per mile?

You can claim this back via your tax return (although there's no specific section for it) or via P87, from memory.

I'm in a company car scheme now so this no longer applies to me.

[interstellar]

Edinburger said:

I thought you only claimed basic rate tax relief on the difference?

So using the OP's example: his employer pays £0.30 so he'd claim 20% of the £0.15 difference, per mile?

You can claim this back via your tax return (although there's no specific section for it) or via P87, from memory.

I'm in a company car scheme now so this no longer applies to me.

Correct you can’t claim the 15p but the tax relief.

Not just basic but the relief is whatever level of tax you pay - basic or 40% etc

[Futureologist]

I pass mine to my accountant to do. Far easier paying an expert to submit accurately on my behalf.
I got £1400 back today for 18/19.

[interstellar]

Futureologist said:

I pass mine to my accountant to do. Far easier paying an expert to submit accurately on my behalf.
I got £1400 back today for 18/19.

I do as well but have done it for 7/8 years so now hmrc give me a higher tax code so I pay less tax as I go along rather than a lump sum, we balance the books at the end of the year. Usually £100 either way due to mileage changes each year.

[Futureologist]

interstellar said:

I do as well but have done it for 7/8 years so now hmrc give me a higher tax code so I pay less tax as I go along rather than a lump sum, we balance the books at the end of the year. Usually £100 either way due to mileage changes each year.

I keep an eye on what tax code HMRC suggest based on projected earnings. My earnings can fluctuate but if it is accurate, I leave it - If it's not I make them aware and they revise it.
All said and done, I wouldn't be without an accountant now just for tidying things up at year end.

[interstellar]

Futureologist said:

I keep an eye on what tax code HMRC suggest based on projected earnings. My earnings can fluctuate but if it is accurate, I leave it - If it's not I make them aware and they revise it.
All said and done, I wouldn't be without an accountant now just for tidying things up at year end.

No me neither.

[anonymous-user]

interstellar said:

Edinburger said:

I thought you only claimed basic rate tax relief on the difference?

So using the OP's example: his employer pays £0.30 so he'd claim 20% of the £0.15 difference, per mile?

You can claim this back via your tax return (although there's no specific section for it) or via P87, from memory.

I'm in a company car scheme now so this no longer applies to me.

Correct you can’t claim the 15p but the tax relief.

Not just basic but the relief is whatever level of tax you pay - basic or 40% etc

Yes, sorry I did mean tax relief not the full 15p, I blame this honking cold...

[S5Scot]

The number of employers who 'sell' the fact, 'You just claim back the difference at the end of the year' must be in the high 90% region. Every employer I have had has come out with the same when in reality it is the tax on the difference. A massive difference between the two.

[snuffy]

If your employer is not paying the HMRC tax free allowance of 45p/mile (which has not increased since 2011) then the answer is very simple - don't drive your own car on company business.