Motor Mileage Allowance tax refund

[Melchett01]

Chaps

Just got back from a couple of weeks of racking up the MMA and whilst away heard that because we get paid 22p /mile as opposed to the Inland Revenue rate of 40p/mile, we can claim back the difference per mile as a tax refund, retrospective for up to 5 years.

Having been to PSF, HR or whatever it's called this week, they didn't know anything about it, but then again, I almost expected that as I walked in the door. I had a look on the Inland Revenue website, and despite being able to read and understand English, I was left totally baffled.

Does anybody have any experience of claiming back the tax difference from MMA claims? If so, how do you go about it and is it easily done? Grateful for any advice. :ok:

[BEagle]

Doesn't apply to 'daily commuting', if I recall correctly.

As mere civilian filth, when I drive somewhere to do some work, the folks I do the work for pay me €0.30 per km because I don't bill them for travelling time. Which is about the same as 30p per mile. The grumpy Westminster porridge-wog allows 40p per mile, so every time I go anywhere to do any work, I tot up the difference and claim for it on my annual tax declaration.

[GlosMikeP]

Yes, I do it every year.

There are defined brackets (as I'm sure you know) for what the IR will allow in p per mile.

My car, as is yours by the look of it, is in the 1500-under 2000 bracket.

You are permitted 40p per mile up to 10,000 miles and 25p per mile thereafter.

So you should claim tax back:

8p per mile x no of miles = £ lots
3p per mile x no of miles done above 10,000 = £ a few
Added together = worthwhile cash backGo for it!

[Pontius Navigator]

Melchett, there are many other threads on this too.

First step is to ask for a printout over the previous 6 years of all your travel and subsistence claims.

Then work out, year by year, the mileage claimed at the PTR rate for each year and the amount refunded each year too. Remember ignore the HtoD as that is ineligible.

Now look at each journey you made and the actual mileage, not the handbrake house distance. For instance HBH may have deducted your residence to place of duty mileage. You can add this back in. HBH may have paid you shortest distance point to point whereas you mtorway journey was longer. Add this back in.

You may have travelled home of a weekend and HBH may nt have paid you. Add this back in.

Mrs Melchett may have driven your car back from the rail station and also gone to pick you up. HBH should have paid both journeys. If you were only paid for the one return trip then add the other trip back in.

All these add-ins will be allowable at 40p/mile.

Now comes the tricky bit. You will have to write to HM Revenue and Customs setting out what mileage you travelled in each year, how much you were paid by HBH each year and how much (the difference from that paid from the 40p rate) you are claiming tax relief for. You will then get tax relief at either the 20, 22 or 40% rate. BUT . . .

If you have not previously filed a tax return for any of these years they may ask you to file for each of these years detailing all the income received from every source.

The current tax year is 06/07 so claims since April 06 will not be reclaimable until Apr 07. The current year for tax returns is 05/06. You have until 31 Jan 07 to file for that year.

If you are talking a few quid in the earlier years you may decide it is not worth a candle.

[Melchett01]

Thanks for the info thus far.

Beags, that was the one bit of the Inland Revenue site that I did manage to understand - but from what I can work out all duty journies apart from postings count as necessary business rather than commuting.

GlosMikeP - is the 8p per mile x no miles a typo? Should it be 18p or have I got it wrong?

I currently don't file a tax return (not paid enough rather than avoiding!) - will I have to file a return and claim it back through that or can it be done on a separate form? Have heard all about the hassles of tax returns, and quite happy to avoid them for as long as possible

Regards.

[GlosMikeP]

Poss just one minor mod Pontius, if you start from home you don't have to deduct the HTD miles as long as the journey is in a 'substantially different direction' from normal commute to work.

And you're right it's the actual mileage from your odometer that counts, not HBH's number.

The law allows you to make deviations from route, for example, for making an honest mistake in navigation. There are also times when you'll be deviated from route by roadworks/road closures. They all count for you.

[GlosMikeP]

Thanks for the info thus far.

GlosMikeP - is the 8p per mile x no miles a typo? Should it be 18p or have I got it wrong?

I currently don't file a tax return (not paid enough rather than avoiding!) - will I have to file a return and claim it back through that or can it be done on a separate form? Have heard all about the hassles of tax returns, and quite happy to avoid them for as long as possible

Regards.
Apologies, my slide rule slipped up. 18p it is.

I believe they will force you to complete a Tax return - but don't fight it. If your tax affairs are straightforward, as they appear to be, they use a 4-side tax form that is simplicity itself to complete. Really.

[Melchett01]

Bloody hell .... they don't make it easy do they!

[GlosMikeP]

Bloody hell .... they don't make it easy do they!

Actually it's more likely HBH that will add the difficulty, the tax man's end is incredibly simple.

Oh, and it's YOUR money, not HBH's or nthe tax man's - so go for it.

[Pontius Navigator]

Poss just one minor mod Pontius, if you start from home you don't have to deduct the HTD miles as long as the journey is in a 'substantially different direction' from normal commute to work.

And you're right it's the actual mileage from your odometer that counts, not HBH's number.

The law allows you to make deviations from route, for example, for making an honest mistake in navigation. There are also times when you'll be deviated from route by roadworks/road closures. They all count for you.

GMP, you never have to deduct the HTD portion from the IR claim. I was refering to HBH making that deduction which they are known to do even when they should not!

The other point Melchett is that posting mileage counts too. Remember you are entitled to a prior visit if you need to look for accommodation. You are also entitled to claim the mileage for your wife's car too.

[GlosMikeP]

GMP, you never have to deduct the HTD portion from the IR claim. I was refering to HBH making that deduction which they are known to do even when they should not.

No that's not right. If you pass close by or at your normal place of work, you can't claim those miles from the tax man. It's a bit woolly as there is no strict definition of what 'close by' means - but be ready to justify it if challenged.

I know this bit rather well, because unlike most of the population, I can: I work from home per a clause in my contract of employment.

Oh and another tip, slightly off-thread; if the Tax Man phones you to ask him fill in a questionnaire about your tax: refuse. It's a ploy HMRC are up to at the moment in an attempt to trick people out of cash. Your only statement need be 'I fill in a tax form each year and I refer you to it'. Nothing they can do about it.

[mary_hinge]

Rates are here:
http://www.theaa.com/allaboutcars/companycartax/ir_mileage_rates.jsp?page=home

Form is here:
http://www.hmrc.gov.uk/worksheets/p11dws6.pdf

and:

http://www.hmrc.gov.uk/manuals/senew/SE31340.htm

I recall this one was kicking around a year or so ago but can't find it:ugh:

[TheInquisitor]

ANY journey you claim for on a 1771 counts for tax relief - if it's HTD you wouldn't get it on a 1771.

Claiming it is (or used to be) as simple as writing a letter to your tax office, stating you wish to claim a refund of tax according to Section xxx (forgotten which section it is). Enclose a statement of the mileage you are claiming relief for for each tax year - no need to send in reams of forms or printouts.

[Pontius Navigator]

The Inquisitor,

I think that is what I said earlier:

Now comes the tricky bit. You will have to write to HM Revenue and Customs setting out what mileage you travelled in each year, how much you were paid by HBH each year and how much (the difference from that paid from the 40p rate) you are claiming tax relief for. You will then get tax relief at either the 20, 22 or 40% rate. BUT . . .

Note the BUT and the If:

If you have not previously filed a tax return for any of these years they may ask you to file for each of these years detailing all the income received from every source

and then the may

[FJ2ME]

Hi there,
Just to add confusion to the argument, I recently asked HMRC about this and they told me to use form P87, (http://www.hmrc.gov.uk/forms/p87.pdf) not the P11dws6 posted above. Who's right then?
Just about to sort this out so any info appreciated.
Cheers

[TheInquisitor]

If you have not previously filed a tax return for any of these years they may ask you to file for each of these years detailing all the income received from every source

Don't know if they do now, but I was never asked for a tax return. I claimed for a not-unsubstantial amount, relating to 1771s, for about 3 years running. Recieved a cheque fairly promptly, too.

[Melchett01]

If I can get out of Melchett Towers in time over the weekend, I will try and do some detailed digging - especially on the issue of filling in tax returns for previous years. Will post details if I can get anything out of them.

[rej]

I think that you can claim for previous year's mileage without having to file a tax form. A few years ago I wrote a nice letter to the Inland Revenue quoting NI number, etc and gave a breakdown of mileage travelled, allowance paid and then the total of the difference between the permitted allowance at 40p per mile against what the RAF paid me. In the good old days before JPA you could go into Gen Office and get a print out of your milagae claims; I am not sure if that is the case now
I received a cheque very quickly which changed my views on the tax man!
Well worth putting pen to paper in good old ISS style and getting some cash back.

[GlosMikeP]

Don't know if they do now, but I was never asked for a tax return. I claimed for a not-unsubstantial amount, relating to 1771s, for about 3 years running. Recieved a cheque fairly promptly, too.
Yup. I fill in a form every year but when I claimed back 4 years' worth (when I found out I could) in mid-year, all I needed to do was show the calculations in a brief letter.

HMRC now adjust my tax code each year to reflect changes in mileage and other bits and bobs.

[Melchett01]

I have been doing some number crunching and have just realised to my horror that I appear to have slipped into the higher tax band with my recent seniority increase - let alone with the interest on any savings to be added!:\
That settles it, definitely time to put pen to paper, I would appear to have nothing to lose!

[mary_hinge]

Hi there,
Just to add confusion to the argument, I recently asked HMRC about this and they told me to use form P87, (http://www.hmrc.gov.uk/forms/p87.pdf) not the P11dws6 posted above. Who's right then?
Just about to sort this out so any info appreciated.
Cheers

You are, I posted the Employer version, sorry for the confusion :{

[GlosMikeP]

I have been doing some number crunching and have just realised to my horror that I appear to have slipped into the higher tax band with my recent seniority increase - let alone with the interest on any savings to be added!:\
That settles it, definitely time to put pen to paper, I would appear to have nothing to lose!

Probably - but be sure to mention your tax affairs are simple (if they are); ie, no property letting, share income and the like. If this fits, you can use the simple "Short Tax Return", which really is very simple compared to the other 'Full Scale' monster.

Also, here is the thread from earlier in year: http://www.pprune.org/forums/showthread.php?t=244916

[Widger]

If you do not file a tax return there is a simple 1 page form for work expenses. It allows you to claim for professional fees as well as duty mileage. Home to Duty does not count as duty mileage! Telephone your tax office, speak nicely and you will find them very helpful.:ok:

[MrBernoulli]

BEagle,

What is a "grumpy Westminster porridge-wog"? (2nd post on this thread)

[Wader2]

BEagle,

What is a "grumpy Westminster porridge-wog"? (2nd post on this thread)

Not "What" but "Who" Sir. Now have you worked it out?

[BEagle]

Come on, MrB- has all that 777 time dulled your wit?

[ZH875]

What a fickle lot we have become, people start to complain about the female Group Captain, claiming all sorts of PC, and here we are again discussing "Porridge-Wogs".:=

It is requested that we treat ALL people and nationalities with respect.:bored:

We can't have it both ways, can we, otherwise all the very hard work carried out by the :mad: PC brigade is wasted.

Runs away and hides:)

[Yeomen dai]

I recently clamed back my years MMA extra without any problems.

[Cpl Plod]

Was that the last 3 years worth? :rolleyes:

[Airson Wenger]

Submitted a P87 a couple of years back.
It may come back to you if you put pure motor mileage on it and you are military.
The MOD has a deal with the Taxman that enables only certain journey types to get the full allowance.
IE you're not entitled to recover medical appointments at the full rate etc.
Spoke with an accountant on this one and the test to apply is whether you could have done your job without travelling.
The fact that you had to travel from Kinloss to Yorkshire for an appointment is not there problem!
Don't forget insurance for business miles for your JPA audit or you may not get the first payment you were after.
Good will eroded? Use MT.


AS