Tax form P87 - claiming back expenses/tax on expenses

[anonymous-user]

Hi guys. I'm not very good with tax stuff, so bear with me, i'll try and outline things as best I can.

April 2010: I started working on this site, 38 miles/day over and above my normal office commute.
I receive £310/month to cover part of my travel time, part of my mileage. This is included in my pre-tax earnings, and I pay PAYE/NI on it.

I have been told that I can actually claim for the difference between the Office and site, based on 40p/25p mile (1st/subsequent 10k miles).

As the £310 is technically not mileage (it was always an informal arrangement, and is specified on payslips as a "site allowance" - which ALSO includes things like allowance for clothing - can I, using Form P87, claim back the 8800 miles I have driven in 2010/11, and then the 3k I've done in 2011/12?

Or have I got totally the wrong end of the stick?

I have thought about going to an accountant but the fees would wipe out the couple of hundred quid I'm likely to get back.

[smartie]

If the £310 was included within your total gross pay and taxed then what they call it is essentially irrelevant - as far as HMRC are concerned it's all just pay.

If that is the case then yes, you can make your form P87 claim (assuming the sites varied and they weren't just a 'different' place of everyday work). Did you have to travel to your office before the site visits?

[anonymous-user]

Nope, my office is in Chelmsford and my temporary site has been Canvey since April 2010. I go straight to site and straight home.

20 miles each way to office. A further 19 miles on top to Canvey (39 miles one-way, 78 miles/day total, and 38 miles on top of the "normal" office commute, were I still going to the office).

I've been looking at P87, and it seems to imply that I can claim (against my PAYE) 40p/mile (1st 10k) and 25p/mile (rest) = £5750? That seems ridiculously high?

I think I've got something very wrong somewhere...

ETA I have. The sum is approx 8800 miles at 40p/mile = £3,520. Still, seems like a lot of wonga...

Thank you for your help though - I'm lost!

Edited by Opulent on Friday 23 September 13:40

[smartie]

You only get tax relief on the £3520 though, so you'll recieve £704 assuming you're not a higher rate tax payer.

I also think HMRC might consider the site your permanent place of work and dissallow the claim.... (or ask for it back if they investigate)

[anonymous-user]

smartie said:

You only get tax relief on the £3520 though, so you'll recieve £704 assuming you're not a higher rate tax payer.

I also think HMRC might consider the site your permanent place of work and dissallow the claim.... (or ask for it back if they investigate)

Apparently it becomes a permanent working location after 2 years. I'll have been here 20 months by the time the job finishes.

Right, that's more like it. £700 sounds feasible. I'm going to assume I'm lower rate taxpayer, once I take my tax allowance/code off my pretax earnings, i'm down to around £26k.

Looking at P87, it doesn't appear to ask me to work out the tax saved, just to give the bulk figures - miles, and total amount (miles x 40p) - so does HMRC work it out and issue what I'm owed?

I'm sorry for all the questions - and I really appreciate your time!

[Eric Mc]

HMRC will calculate the tax overpaid and any refunds due to you.

[anonymous-user]

You lot have just made my month.

Before today, I'd have got so lost I'd have not bothered even attempting to claim...

Thank you.