OK, so in a similar vein to some other tax related posts, and because it's something I do and because when I mentioned it in a post the other day several people found it helpful... here's a post about reclaiming tax benefits against business mileage.
My job requires me to travel for work. I probably do around 20,000 miles a year with more than half of that being expensable mileage (the rest is personal or commuting). I can claim Xp per mile from work expenses and get a car allowance (to cover the cost of having the car and maintenance of it).
That's all pretty standard for most companies like mine.
Here's what you may not know... HMRC allows you to offset 45p per mile against tax. So that means, for example, if you employer pays 25p per mile in expenses then you can claim the extra 20p per mile against tax relief!
FY15/16 business mileage: 10,000
Employer expenses: 25p per mile
Expenses received: £2,500
HMRC difference: 20p per mil
Tax Relief Claim: £2,000*
*note you will not receive £2,000, this will be offset against your tax and you will receive a tax rebate.
WHAT YOU NEED:
- More info at deal link
- or here: https://www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances/travel-mileage-and-fuel-rates-and-allowances
- Complete and submit a P87 form. (there's an online version here: https://www.gov.uk/government/publications/income-tax-tax-relief-for-expenses-of-employment-p87)
Really hope some people benefit from this as I did when I first found out (2 years of claims at once!).
Thanks majormelchett - "And remember, if your claim is for over £2500 or your employer don't pay anything towards the miles (unless your a carer) - then prepare to do a self assessment return."
- This unfortunately doesn't apply for company cars. This applies to personally owned cars, with or without company car allowance.