HMRC - Tax relief for business mileage if less than 45p per mile for car/vans (even with car allowance)
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HMRC - Tax relief for business mileage if less than 45p per mile for car/vans (even with car allowance)

28
Found 13th Jan 2014
I saw the deal early about reclaiming tax if you have an office at home and if reminded me of reclaiming mileage from the HMRC (which I claimed last tax year for the first time). I only came across it on a random forum about car allowance.

If you claim business mileage from your company and its less than e.g. 45p per mile for a car (even if you get a car allowance) you can claim back the difference from HMRC. Or I assume the whole amount if you get £0.

You can claim for cars, vans, motorcycles & bicycles! Rates vary, see link.

Write a letter like this (example figures) to HMRC -

"Tax relief for business mileage 2011 – 2012

Dear Sir/Madame,

Last tax year I did 283 business miles (please see sheet attached for detail).

Amount I should of received - 283 x 0.45 = £127.35
The amount I receive from my employer - 283 x 0.15 = £42.45
Mileage Allowance Relief = £84.90

Please contact me with any questions.

Kind regards,
SIGN

Name
NI number"

I provided proof, just the forms I complete for my company to claim mileage (not sure if necessary).

Send the letter to -

HM Revenue & Customs
Pay As You Earn
PO Box 1970
Liverpool
L75 1WX

After doing this I received a cheque for the amount requested, based on the workings above.

Hope this is of some help :-)

Edit - mam2cam said you can also download a P87 form from the HMRC website

Edit - I believe you can claim as far back as tax year 09-10 (before April 2014), if it works the same way as reclaiming tax overpaid through PAYE.

Note - neils311 posted this link - hmrc.gov.uk/inc…htm which explains it all.

Note - I didn't need to complete a form or provide any other proof but this no doubt varies.

28 Comments

Have your contract of employment ready for HMRC

NB - its the tax on the difference you would receive - not the whole amount

Very useful ta

Interesting!

The actual refund using the example above would be approx £16 not £84 if you are a basic rate taxpayer

Easier still download the P87 form from the HMRC website and send it in as when HMRC receive your letter they normally issue this form to you anyway!

mr2000

NB - its the tax on the difference you would receive - not the whole … NB - its the tax on the difference you would receive - not the whole amount



You can claim 45p per mile tax free so the original post is correct.

mr2000

NB - its the tax on the difference you would receive - not the whole … NB - its the tax on the difference you would receive - not the whole amount



You can claim a tax free mileage allowance, up to 45p per mile so the OP is correct.

Thanks op. How far are you able to claim back? The example above shows 2011-12. So I could claim that year and 2012-2013?

so if u get 45p per mile, like me, then this won't apply.

Original Poster

Deedie that's correct.

Also can claim for the last 6 years if you have not already done so.

Personal car or/and company car (instead of taking allowance ?)

Can you claim from home to office mileage ? Which is not covered in your standard business miles if that is repaid by your employer

mr2000

NB - its the tax on the difference you would receive - not the whole … NB - its the tax on the difference you would receive - not the whole amount

I'm fairly certain that this is correct. I work in the care industry, and get asked about this all the time.

Luckyblackcat

Can you claim from home to office mileage ? Which is not covered in your … Can you claim from home to office mileage ? Which is not covered in your standard business miles if that is repaid by your employer

I don't believe so. I think it's only if you actually use your vehicle while you are working, so driving to work, then working in an office (or whatever) wouldn't apply.

Just a query as when I worked for an agency doing the same job I could and it was offset in my pay packet under expenses.. But thanks Quietus

Am I correct in thinking that if you work at various locations, they would deduct your mileage each day from "home to office" even if you don't go to the office, is this seen as your normal daily mileage for commuting. My home to office return is around 140 miles, but I'm only there once a week, if another journey was say 200 miles (going directly from home) can you only claim the 60 miles difference. Hope that made sense.

I have been doing this for the last few years, you get a tax relief on the shortfall of fuel expenses that has not been paid back to you by your employer. You don't get the full 45p relief, can you really see HMRC paying everyone 45p per mile to use their vehicle to get to work........

if you have worked out that you are entitled to £1000 expenses using the HMRC calculation guide and your employer has paid £200 worth of expenses then you have an £800 shortfall. Tax relief on this is 20% so would expect to see around £160 which is either paid in 1 payment or your tax code alters to reflect this.
If your expenses are above a certain amount ( I think its around £2600) then you need to fill in a self assessment to claim for relief.
It is quite difficult to get your head round but worth it.

chuckies27

Am I correct in thinking that if you work at various locations, they … Am I correct in thinking that if you work at various locations, they would deduct your mileage each day from "home to office" even if you don't go to the office, is this seen as your normal daily mileage for commuting. My home to office return is around 140 miles, but I'm only there once a week, if another journey was say 200 miles (going directly from home) can you only claim the 60 miles difference. Hope that made sense.

You'd likely have to check the terms in your contract. For most that I've seen, they take the mileage that's listed as paid on their payslips, and then claim back the tax on how much it's under 45p. e.g. Our staff get 22p a mile. If their payslips for the year said that they had been paid for 2,400 miles, then they'd multiply that 2,400 miles by the 23p (45p - 22p = 23p) difference, and that's the amount they'd enter on the claim form.

I suspect that if the mileage you're doing to various locations is not normally paid as part of your job (which yours sounds like, as it's classed as your commute to work), then you'd probably not be able to claim for it. In your example, you'd speak to your employer about paying the extra 60 miles to you (as it's not your 'normal' commute), and then claim the tax relief on whatever rate they pay your mileage at deducted from 45p. e.g. if they paid you the 60 miles at 40p, you could claim for the tax relief on 60 miles multiplied by the other 5p (45p - 40p = 5p). i.e. Tax relief on just £3.:p

In short, you claim for the difference on what you have already been paid.

I hope that makes sense, as it started to sound like waffle in my head!X)

COLD.

NONE OF THESE TAX POSTS ARE DEALS.

LEGAL TAX CLAIMS ARE NOT DEALS!

*rant over*

283 miles?
Where did you drive to? The corner shop?

Quick question -I'm trying to retrospectively add this into my Self Assessment form. After much searching I've eventually found the right box, but am not sure what to enter into it:

a) The full difference between what my employer has reimbursed me and what the figure should have been at 45p per mile; or
b) 40% (my tax bracket) of the figure derived in a)

I'm assuming that it's a), and that the SA system is clever enough to calculate the 40% itself, but there's nothing in the guidance that I can find that explains it. I know that b) is what I'm entitled to, I just don't want to receive 40% of that figure

Just in case anyone is copying the OP's suggested letter, note that
Amount I should of received
should read
Amount I should have received

(As in, "I have received £100." Not, "I of received £100.")

Original Poster

Hi,

Thanks for all the comments/ heat. I agree with Turnma on the grammar. Yes Stanley, I didn't drive many miles last tax year as I started the job in Feb and claimed for the tax year in April (before that the miles were covered fully by my previous company).

Indiannablue - I would do A. I'm sure the tax people work it all out from the information you provide.

I'm wondering if my company don't pay me a mileage allowance of X per business mile, then can I claim back the entire 45p x business miles? (My company pay my fuel but for that I'm taxed at 40% as if it was salary, therefore it is not a mileage allowance) or is there a minimum difference I can claim i.e. 45p - 20p. Thanks

You can only claim tax relief on the difference between 45p and what you are paid per mile, not the difference itself.

Read this: gov.uk/tax…sts
Edited by: "Whitedot" 23rd Jan 2016
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