Hmrc Tax Refund For Mileage

[jesmond]

niece is having problems claiming this, she works for an agency and does get some mileage money but found out from a co-worker that if she filled in a p87 then would get some tax back (I think this is what she means) but has had problems due to a compliance check which is unfortunate for her as its her first time claiming, anyway this co-worker has since told her to tell hmrc that she should class herself as and I quote as "bob the tree surgeon" not joking here, but she cant find any reference in any of the leaflets they have sent her, so any help would be great

[Buenchico]

Start here:
http://www.hmrc.gov.uk/incometax/how-to-get.htm

[friedgreentomato]

You will have to wait until the compliance checks are completed - I also don't get the bob the tree surgeon comment?

[jesmond]

this reference was used as a guide in one of their leaflets/booklets to apparently show people which category they fall into for claiming

[DJHawkes]

i think it means self employed

[friedgreentomato]

When you say she gets mileage money how much is it? Does she claim the full 45p from the employer?

She will only at max be able to claim 20% of the fuel @ 45p per mile

[jesmond]

apparently she can claim the 45p as she doesn't get this amount from agency, she gets 20p per mile I think but she is not classed as self employed as far as I know as they pay her tax and ni

[friedgreentomato]

She will not be able to claim 45p a mile on the tax at 20% I'm sorry to say.

[Buenchico]

By simply following the links from my original post, I got here:
http://www.hmrc.gov.uk/incometax/relief-mileage.htm#2
That information would seem to answer your question.

[friedgreentomato]

So to use their example £135 @ 20% is £27

[pixie373]

Hmmm. I can say from experience and using those forms, it is calculated to something like £350 and after their magic maths, you get a cheque for £20.

[friedgreentomato]

Yes because they only pay the tax back not the mileage!!

[buildersmate]

What she will get back is 20% of 25p per mile, multiplied by the number of miles she is able to claim. Nothing more, nothing less.
The 25p figure comes from the difference between what the employer is paying her, compared to the figure 'allowed' by HMRC and which many employers pay.

[Buenchico]

>>>Nothing more, nothing less

Unless the total annual business mileage is over 10,000 miles. (Some carers, for example, working in rural areas can exceed that). Thereafter it's no longer '20% of 25p per mile' but '20% of 5p per mile.