Car allowance + P11D

ScoobyDoo69 · 28 Jun 2019 at 11:23

Hey guys,

Looking for a bit of advice please.

Started a new job in January that has car allowance, and between Jan to end of March I did around 5000 business miles.

The mileage rate paid is the car allowance rate, so not a lot, but my understanding is that I can claim back some of the difference up to the full mileage rate via the P11D.

However, when I'm looking through the P11D details it seems to be for employers instead of employees. But maybe I'm getting something confused.

Can anyone offer some advice please?

Thanks
Kosta

Mercenary Keyboard Warrior · 28 Jun 2019 at 11:35

Check HMRC website, i did the same many years ago
You could claim back the tax on the difference between HMRC rate - reimbursed rate. However you needed to keep detailed records.
I did it simply by sending them a letter confirming the above and they processed a refund. (I did it following tax year as I only worked for the company for 1 year)

Jez · 28 Jun 2019 at 13:13

P11d is for the employer to report benefits in kind.

You required a P87 tax relief form.

IAmATeaf · 28 Jun 2019 at 13:55

Give HMRC a call and they should be able to help. I also get a car allowance and claim for the relief for my business miles. All they asked me for was the overall mileage and how much expense claim I made for that year.

kirkster · 29 Jun 2019 at 18:12

You claim the difference between what your employer pays you (say 20p per mile) and the maximum rate set by HMRC which is 45p per mile. So in that example you could claim tax relief at your marginal rate on the difference between the two, in that example 25p per mile. Say you did 10000 miles you could claim tax relief back on 25p x 10000 =£2500. So if you were a basic rate tax payer the HMRC would pay you a rebate of 0.2 (i.e. 20%) x £2500 = £500. You report this either on a P87 or on your tax return. HMRC will rebate the money directly back into your bank account. It is mickey mouse to do and takes 15 minutes.

This is 100% the situation and how it works. I do this myself.

ScoobyDoo69 · 29 Jun 2019 at 20:18

Ok great, thanks for the info everyone.

cheesyboy · 29 Jun 2019 at 20:53

What **** arse employers don't pay their staff full mileage rate?

Or is the mileage a top-up of the 'car allowance'?

Jez · 29 Jun 2019 at 21:01

cheesyboy said:
What **** arse employers don't pay their staff full mileage rate?

Or is the mileage a top-up of the 'car allowance'?

Very few if the recipient also receives a car allowance.

These are the advisory fuel rates for car allowance or company car drivers;
https://www.gov.uk/government/publications/advisory-fuel-rates/advisory-fuel-rates-from-1-march-2016

Kenai · 29 Jun 2019 at 21:02

cheesyboy said:
What **** arse employers don't pay their staff full mileage rate?

Or is the mileage a top-up of the 'car allowance'?

In my experience, most that pay a car allowance in lieu of a company car.

Those on the allowance or with a company car get a lower mileage rate intended to cover fuel. (most tend to go with HMRC advisory rate for company cars)

Those without get the full private car use rate, to cover all associated costs of using your personal vehicle.

ScoobyDoo69 · 30 Jun 2019 at 15:59

Yup, I get car allowance (which doesn't work out to be a lot after tax) but other employees get full mileage rate if they don't have the car allowance.

In my previous role in the NHS I got 56p per mile, so had to pay tax on the bit above the allowed mileage rate. So having the option to reclaim some of the difference in this role is nice.

DB_SamX · 11 Jul 2021 at 17:19

2 year thread revival!

I get a car allowance and petrol paid at 16p a mile. So, I have been submitting a P87 for the last 5 years to claim tax relieve on the 45p-16p difference, without any issue.

However, for 20-21, I submitted the form really early - 1st week of May. HMRC have only just written to me saying they are still awaiting my P11D. I have never been asked this, and having spoken to the company accountant, she never files P11d.

I suspect that because I filed the P87 early, there was some information missing for 20-21 still missing from my employer, but if a P11d isn't going to be filed, where would HMRC find what they need?

Not a motors question as such, and I will give them a call this week, but asking on the off-chance someone on here has had the same issue.