HMRC vehicle expenses question

[jonshepherd]

Hi all, there seems to be some knowledgeable people on here when it comes to motor mileage tax, I've got a few questions...

My understanding is that I can claim the tax back on my motor mileage for the last couple of years using an HMRC P87 form. One of the first items on the form says 'only complete this form if your allowable expenses do not exceed £2500', if so complete a tax return.

Is this £2500 a limit on the tax I'll claim back, or the value I calculate by multiplying my mileage by 45p (25p) after 10,000 miles?

I've worked out I've done ~17,500 miles (10,000miles x £0.45=£4500 + 7,500miles * £0.25=£1875) which equals a total of ~£6375. I assume I'd get 20% of this back (VAT rate?) which would be ~£1275 which is under the £2500 limit.

Which is it? Thanks

[Eric Mc]

"Allowable Expenses" means the amount of mileage you wish to claim - not the tax relief/reduction you expect.

[jonshepherd]

Ah ok, so for this year I'll have to fill out a tax return?

Thanks very much.