Claiming more mileage

[countrybumpkin]

Hi,
my partner has recently started a job where she uses her car, she only gets 20p a mile but her manager told her that company can claim more but doesnt know how but if we find out can claim 40p per mile, i've been searching on HMRC and only finding old forms and no indication how an employer claims from government?
any ideas?
thanks

[Mr Veritas]

According to this form(Section 2) from HMRC,the rate is 40p per mile.
http://docs.google.co...CgFeUnV8mwcUiYtwXO7Gg

I also get the feeling that as this is not a company car your partner has to fill in the relevant forms and claim the tax back themselves?

This also may be helpful?
http://www.hmrc.gov.u...mployee-factsheet.pdf

Although some of the dates on the HMRC sites may seem old it does not mean they are out of date,just that they have not needed to be updated.

[Skyline D]

This has got nothing to do with the company. The employer DOESN'T claim, the taxpayer does.

The company are allowed to pay UP TO 40p per mile tax free for business mileage but don't have to and in this case clearly aren't. As a concession, where the company do not pay the full 40p the government will allow the taxpayer to claim the balance as a deduction against their own tax.

Just to be clear, the government will NOT pay you the other 20p per mile, they will allow you to claim 20p more per mile against your own taxable income. Assuming you are a 20% taxpayer that means in effect they will refund you 4p per mile in cash terms.

You have to ask the HMRC for a claim form for it unless you do a tax return normally, in which case you'd just put it on that. It can only be claimed retrospectively after the end of each tax year to 5th April.

[Skyline D]

Oh, and you'd need to have a record of the actual journeys undertaken to make up the number of miles in the claim. They do ask for these from a sample of claimants and will query anything they think looks suspect.

[buildersmate]

Just to add. Frankly if an employer offered me only 20p per mile for using my own car on company business, I'd tell them 'no thanks - please provide me with a pool car or hire car'..
Unless you have agreed to it as part of your T&cs of employment, this is unenforceable.
Its also downright stingy.
You could counter-offer to use your bicycle at 6p per mile and see what they say.

[hev]

go to your local revenue office and ask for a P87 to claim the extra 20p a mile that you are entitled to. The employer does not claim this the taxpayer does. the form is relatively easy.

[buildersmate]

No, no, no, hev. Don't you read other people's answers? This is EXACTLY what you one cannot do.
As Skyline correctly described, what you can get back off off from HMRC is tax relief on the amount of mileage that the employer declines to fund from the 40p figure.
So if one is a basic rate taxpayer, one gets tax relief equal to 20% of (40-20) or 4p per mile. For a higher rate (40%) taxpayer, the figure is 8p per mile.

[hev]

sorry wasnt very clear on my reply and buildersmate dont get your knickers in a twist