Tax Rebates for business mileage (up to 45p per mile!)

Found 20th Sep 2016
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!

EXAMPLE:

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: gov.uk/gov…ces

- 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!).

EDITS:

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.

18 Comments

link not working for the P87?

Original Poster

bresslaw73

link not working for the P87?


Updating OP, link here: gov.uk/gov…p87

Banned

Not if you have a single place of work you cant...

Or you certainly were not able to.

So, if i am understanding this, i get 0.12p per mile from HMRC advisory fuel rates for business mileage (roughly 20000 per year, around 50% is business miles). Does the above mean i am in a position to claim on the P87?

simonkarios

So, if i am understanding this, i get 0.12p per mile from HMRC advisory … So, if i am understanding this, i get 0.12p per mile from HMRC advisory fuel rates for business mileage (roughly 20000 per year, around 50% is business miles). Does the above mean i am in a position to claim on the P87?



Do you use your own car or is it a company car? Mine is 12p a mile ss well but I'm only claiming the fuel as it's their car, so i can't claim,

bresslaw73

Do you use your own car or is it a company car? Mine is 12p a mile ss … Do you use your own car or is it a company car? Mine is 12p a mile ss well but I'm only claiming the fuel as it's their car, so i can't claim,



Doesn't work for company cars where you pay for fuel and they give you 12 or 13p a mile etc. In fact the amount per mile they give you is dictated by the govt.

simonkarios

So, if i am understanding this, i get 0.12p per mile from HMRC advisory … So, if i am understanding this, i get 0.12p per mile from HMRC advisory fuel rates for business mileage (roughly 20000 per year, around 50% is business miles). Does the above mean i am in a position to claim on the P87?



not if it's a company supplied car; otherwise yes


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.

simonkarios

So, if i am understanding this, i get 0.12p per mile from HMRC advisory … So, if i am understanding this, i get 0.12p per mile from HMRC advisory fuel rates for business mileage (roughly 20000 per year, around 50% is business miles). Does the above mean i am in a position to claim on the P87?



It's been answered a few times already mate. No.

Thanks OP

This is worth knowing thanks.

I did start claiming a few years ago, now I'm doomed to having to do a tax return every year. If I understand it correctly, once you do a tax return there's no going back, you have to do one every year

Original Poster

badgerman2

This is worth knowing thanks. I did start claiming a few years ago, now … This is worth knowing thanks. I did start claiming a few years ago, now I'm doomed to having to do a tax return every year. If I understand it correctly, once you do a tax return there's no going back, you have to do one every year


Don't see why you can't skip a year tbh. For example... you don't do the mileage anymore, or your employer pays more/less, or you just don't want the free cash from the rebate! It's the same as a self assessment form (as long as it's under £2.5k) so don't know why you'd be tied into it really.

MJ10

Don't see why you can't skip a year tbh. For example... you don't do the … Don't see why you can't skip a year tbh. For example... you don't do the mileage anymore, or your employer pays more/less, or you just don't want the free cash from the rebate! It's the same as a self assessment form (as long as it's under £2.5k) so don't know why you'd be tied into it really.



he'd be worried about the automatic fine

you can get out of doing it - if you don't need to do one in the future - by asking hmrc and they will give you a letter saying no need to do tax return until your circs change

Original Poster

luvsadealdealdeal

he'd be worried about the automatic fineyou can get out of doing it - if … he'd be worried about the automatic fineyou can get out of doing it - if you don't need to do one in the future - by asking hmrc and they will give you a letter saying no need to do tax return until your circs change


I've missed this - what's the fine about?

MJ10

I've missed this - what's the fine about?



you are employed but submit self assessment returns - eg to reclaim the extra (say) 20p against tax relief on petrol

then you decide you won't claim the tax relief any more, maybe you got a company car or something or moved to a desk job so you stop completing self assessment

you'll get an automatic fine if you don't get the ok from hmrc first

Original Poster

luvsadealdealdeal

you are employed but submit self assessment returns - eg to reclaim the … you are employed but submit self assessment returns - eg to reclaim the extra (say) 20p against tax relief on petrolthen you decide you won't claim the tax relief any more, maybe you got a company car or something or moved to a desk job so you stop completing self assessmentyou'll get an automatic fine if you don't get the ok from hmrc first



Well that's rubbish! Not sure they make that obvious! Will keep a note of that and make sure I don't miss a year.

MJ10

Well that's rubbish! Not sure they make that obvious! Will keep a note of … Well that's rubbish! Not sure they make that obvious! Will keep a note of that and make sure I don't miss a year.



​It's not quite like that, the penalty is for not filing a tax return by the deadline if one has been issued. If one has been issued you can get it cancelled if your circumstances no longer require Self Assessment.

Original Poster

pauldh

​It's not quite like that, the penalty is for not filing a tax return by t … ​It's not quite like that, the penalty is for not filing a tax return by the deadline if one has been issued. If one has been issued you can get it cancelled if your circumstances no longer require Self Assessment.



Oh right. But I don't ever get issued one as I guess I don't do a full self assessment, just the P87.
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