Figuring out P11D Mileage.

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LiE

LiE

LiE

Caporegime
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Situation is that I had a fuel card (stopped 2 months ago) and today I got my P11D. What this shows is that I've done far more business mileage than personal, but I can't make sense if there is some money owed?

Total business mileage: 3510
Total amount paid to employee: £661.47
Approved Mileage Allowance: (3510 miles at £0.45): £1579.50
Taxable Value (£661.47 - £1579.50): £918.03

Total Value Benefit: £0.00.

If I was claiming via expenses the mileage (which I am now) then I'd would have seen that £918.03 - which I'd be taxed on presumably?

Question is, can this £918.03 be reclaimed in some way?
 
You are not taxed on expenses for mileage up to 10,000 miles per annum at 45p per mile.

I believe you can claim back the tax (dependent on your backet) on the difference between the 918 and 661 figures
 
Thanks. Not sure I follow your 2nd point about claiming difference between 918 and 661.

If I'd have expensed this like I do now, I'd have £918 come back to me.
 
You would, but the HMRC arent responsible for what you get paid, only the tax on it.

I'm pretty sure it will work the same as my situation - where I only get 35p per mile. I'm a 40% tax payer on my salary, so I was able to claim back 40% of the difference between what I was paid and what I would have been paid at 45p per mile

Edit, sorry, misread the taxable value as the total mileage value. You should be able to get back 40 or 20% of £918 back - thats my understanding of it anyway
 
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Tax is a nightmare.. 40% of £918 is OK. Just can't get my head round that if I had expensed this then I'd have pocket £918, but using a fuel card I'd pocket only 40%.

Any idea how to claim?
 
If you have the option to expense it then you are absolutely better off - remember more is coming out of your employers pocket for that.

I beleive you can write to HMRC to ask for a refund, but there are services which handle it for you. I used the latter as I had about 2 years of mileage claim forms to work through and couldnt really be bothered doing it myself
 
Basically it works like this:

HMRC say that you can be paid 45p/mile for the first 10,000 miles and then 25p/mile thereafter without it being considered a taxable benefit.

Your company can choose to pay whatever it likes, and then at the end of the tax year you either claim some tax back, or you pay some extra tax.

Here's a worked example:
In my case I get paid 21p/mile, and I do approx. 27,000 business miles, so I receive (in the form of expenses reimbursement) £0.21 x 27,000 = £5,670.00.
HMRC say I can be paid more, specifically:
£0.45 x 10,000 + £0.25 x 17,000 = £8,750.00.
Because my company doesn't pay me that much I am entitled to claim back the tax on the difference:
£8,750 -£5,670 = £3,080 x 40% = £1,232.00.

Yes, I'd be much better off if I was paid the full amount, but ho hum, I get a car allowance which pays for the car itself so the rest is a bonus.
 
Thanks. Glad I've moved over to .45p/mile via expenses now. I'll fill in a tax return and see how it goes.
 
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