Non-motoring > Claiming tax back on business mileage Legal Questions
Thread Author: movilogo Replies: 14
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New Wed 13 Jan 16 09:48 
 Claiming tax back on business mileage - movilogo
I have done some business mileage on my personal car. The HMRC rule is 45p/mile but my employer reimburses me 13p/mile.

I am trying to claim tax back on [(45p-13p) x business miles] amount.

For that, I have filled up HMRC P87 form from here.
www.gov.uk/government/publications/income-tax-tax-relief-for-expenses-of-employment-p87

However, even though my claim is less than £2500, it says in the generated PDF (page 5) that I need to file a self assessment (which I don't as I'm a PAYE).

I have uploaded a sample file here (using some dummy details but output remains same if I fill up using my real details).


www.pdf-archive.com/2016/01/12/dummyp87filled/

Any idea?
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New Wed 13 Jan 16 10:01 
 Claiming tax back on business mileage - Zero
>> However, even though my claim is less than £2500, it says in the generated PDF
>> (page 5) that I need to file a self assessment (which I don't as I'm
>> a PAYE).


Its probably because its a change in circumstances, if you have never claimed it before. I sometimes had to self assess even tho I was PAYE, usually because of the car or allowances or mileage.
Last edited by: VxFan on Wed 13 Jan 16 at 12:52
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New Wed 13 Jan 16 10:17 
 Claiming tax back on business mileage - smokie
I always had to self-assess, I assumed historically cos of company cars and health insurance etc.

SWMBO never had to, until I became a contractor and paid her a (small) dividend from my ltd company. She now has to self-assess every year and isn't happy about it!

Self assessment is straightforward enough but it does require some effort - especially if you have savings and need to declare the interest.
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New Wed 13 Jan 16 10:23 
 Claiming tax back on business mileage - movilogo
But page clearly says if your claim is less than £2500 then SA is not needed.

At the last page it says post it to HMRC. So I wonder whether there is an error in generated PDF.

>> if you have never claimed it before

But this form doesn't check that! HMRC can only check this once I post the form to them.
Last edited by: movilogo on Wed 13 Jan 16 at 10:24
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New Wed 13 Jan 16 10:38 
 Claiming tax back on business mileage - Zero
SQ
>> But this form doesn't check that! HMRC can only check this once I post the
>> form to them.

Either you want the money or you dont.
Last edited by: VxFan on Wed 13 Jan 16 at 12:52
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New Wed 13 Jan 16 10:43 
 Claiming tax back on business mileage - movilogo
I want the money without self assessment as HMRC says it is not needed if claim is below £2500.
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New Wed 13 Jan 16 11:02 
 Claiming tax back on business mileage - Falkirk Bairn
If your income is above a certain limit (do not know current level) or you receive income from multiple sources then a SA can be needed.

When I worked I claimed mileage rebates and had a much higher income. I have a lower income, now I am retired, but receive 4 pensions & State Pension + some dividends.

It takes me 15 to 20 mins to locate / add up the income streams (P60s, dividends, interest etc) & 5 mins to fill in a few lines in 4 x sides of A4 - I then send it recorded delivery as one year they went to fine me for not filling in a form they had sent me.

They send me a tax due form & then a bill around Xmas time - I used to get thousands back, I now pay a few hundred at most with the option of them claawing back monies via a lower tax code number.

Pretty painless really.
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New Wed 13 Jan 16 11:35 
 Claiming tax back on business mileage - rtj70
Is this for tax year 2014/2015 or 2015/2016?
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New Wed 13 Jan 16 12:04 
 Claiming tax back on business mileage - movilogo
It is for 2014-15.

I am PAYE and no other income.

Don't think HMRC form is checking my details in real time. Whatever values I put it still comes up with same "What to do now" comments!

Last edited by: movilogo on Wed 13 Jan 16 at 12:05
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New Wed 13 Jan 16 11:37 
 Claiming tax back on business mileage - sooty123
I tried claiming the difference on mileage allowance ( we get 25p) gave up in the end. It was for about £100, no end of questions to answer going back years from hmrc. Never bothered again, i just get a car from work all the time now or don't go.
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New Wed 13 Jan 16 15:16 
 Claiming tax back on business mileage - rtj70
If this was me, I'd weigh up the amount I'd gain versus the hassle. You may find they want you to do returns for previous years or this might trigger them to look at previous years themselves.

The 13p/mile will have covered the petrol/diesel and that's about it. But how much are we talking about here?

If this falls within your 40% tax bracket and it was many miles then I'd say probably worth doing and you probably will need to do a tax return to get it. And again next year.

If it was a fair few hundred quid, then what's the issue doing a tax return to get money you're entitled to. If it was me and only a hundred or so I'd not bother.
Last edited by: rtj70 on Wed 13 Jan 16 at 15:17
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New Wed 13 Jan 16 17:27 
 Claiming tax back on business mileage - Alastairw
I'd just get the return done. Doing it online is pretty painless, and avoids the problem of keying errors at the HMRC end, which P87s are prone to. When did they send you the Return/notice to file movi? If it was recent you have three months to file, but otherwise you need to get a wiggle on as the filing deadline is approaching.
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New Wed 13 Jan 16 17:29 
 Claiming tax back on business mileage - Alastairw
Incidentally, generally if HMRC. issue a return they want it back. Very difficult to convince them that you don't meet the criteria without submitting it.
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New Wed 13 Jan 16 17:51 
 Claiming tax back on business mileage - zippy
If you are a higher rate tax payer and doing 25,000 miles on business a year and getting 11 pence per mile back from the company then you could be claiming over £2k per year back from HMRC!
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New Wed 13 Jan 16 18:08 
 Claiming tax back on business mileage - Bromptonaut
Sign and return the form. Hilight the section about needing an SA return and send a brief covering letter pointing out the discrepancy.

Either you'll get a payment and a note explaining that form was wrong or you'll get a letter explaining that you need to SA and why.

I've never had to SA as Civil Service pay & pension were/are all PAYE. May do now though as I've a second income from CA taxed 'BR'. Former CS colleague on grade above me (and therefore on 40% tax) were sometimes asked to SA in spite of being all PAYE. They couldn't understand why.
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