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How Tax relief is worked out when claiming Petrol expenses
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Can anyone explain how much I can claim through my Tax for Petrol expenses, I am a Carer travelling up to 100 miles per week and my employer does not pay me anything towards my Petrol costs, I have submitted a claim for over 2,000 miles but only received �178, although the approved amount is 40 pence per mile, I worked it out at over �800, why is this?
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For more on marking an answer as the "Best Answer", please visit our FAQ.Hi, I can only claim from my first call to my last call that is from each house to the next and not from home and to home from my last call, I sent all of my proof of travel to HMRC and was led to believe as my employer pays nothing towards my petrol costs I could claim 40 pence back for every mile I claim for, I claimed for over 2000 miles yet only received �178 back, can you understand that because I can't?!
Ah, so the �178 was from HMRC was it?
All you get back from HMRC is tax relief on the underpayment in expenses.
So, if you do 2000 qualifying miles and your employer pays you nothing rather than the HMRC allowed rate of 40p a mile, you can claim tax relief on the 40p a mile (�800)
The tax relief on this �800 would be 20% of �800 which equals �160.
So the figure of �178 would be right - it translates to a claim for around 2200 miles.
All you get back from HMRC is tax relief on the underpayment in expenses.
So, if you do 2000 qualifying miles and your employer pays you nothing rather than the HMRC allowed rate of 40p a mile, you can claim tax relief on the 40p a mile (�800)
The tax relief on this �800 would be 20% of �800 which equals �160.
So the figure of �178 would be right - it translates to a claim for around 2200 miles.
Factor's answer is correct.
It's time to challenge your employer because this is ridiculous. I cannot believe that you have an employment contract whereby you are expected to pay for all your mileage. What happens when they send you to Timbuktu?
There are some stingey employers who don't pay the full whack of 40p per mile, but I've never heard of one who pays nothing. Go back and tell them that your car is not available for use on these jaunts - only to get you to your normal place of work.
It's time to challenge your employer because this is ridiculous. I cannot believe that you have an employment contract whereby you are expected to pay for all your mileage. What happens when they send you to Timbuktu?
There are some stingey employers who don't pay the full whack of 40p per mile, but I've never heard of one who pays nothing. Go back and tell them that your car is not available for use on these jaunts - only to get you to your normal place of work.
Thank you both very much for your help! I have always been led to believe I could claim the actual �800 back not just �178, so I for one will be looking for work elsewhere, being a Carer is a lovely job but pays very little and the amount of miles I travel takes a days pay each week so enough is enough, many thanks!
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