P87 tax relief... How is it paid?

Just filled in my P87 for the last 2 years to claim the difference between what I get paid for fuel and what the tax man says I am allowed...

The amount for the last 2 years I have worked out about £1k in overpaid tax - my question is this:

Do they just adjust your tax code so I pay less tax the rest of the year or do I get a cheque :)smashin:)?

Anyone have any ideas?
 
You don't say whether you are self employed or an employee.

Let's deal with that first.
 
You don't say whether you are self employed or an employee.

Let's deal with that first.

I am employed - pay tax on my salary and car allowance...
 
Assuming you are an employee, in the first instance HMC will probably want to know the nature of your work, where you operate from, what your duties are and whether they are confined to a specific geographical area, whether the claim relates to travel from home and what reimbursement you receive.

They will most likely also want to see your detailed mileage records and a copy of your contract of employment.
 
Assuming you are an employee, in the first instance HMC will probably want to know the nature of your work, where you operate from, what your duties are and whether they are confined to a specific geographical area, whether the claim relates to travel from home and what reimbursement you receive.

They will most likely also want to see your detailed mileage records and a copy of your contract of employment.

No problem - I have all of that to hand - I get paid 12p a mile and all of my work I have to travel to...as I work from home.

I have all of my mileage recorded to enable the claiming back of the 12p a mile allowance...

My job is a service engineer
 

nheather

Distinguished Member
I take it you have taken the allowance as money and use you own car rather than have a car on the company scheme.

If the latter, you can't claim tax relief.

Cheers,

Nigel
 
I take it you have taken the allowance as money and use you own car rather than have a car on the company scheme.

If the latter, you can't claim tax relief.

Cheers,

Nigel

I asked that today and was told aslong as it was taxed (car allowance) then you can claim it...
 

nheather

Distinguished Member
I asked that today and was told aslong as it was taxed (car allowance) then you can claim it...

Only if you take the allowance as cash. If you take a car on the company scheme instead then you can't claim tax relief.

I know only too well as it is a bone of contention with many at my company.

I get a car as a grade perk. I could take the money but the commute plus the loads of business mileage I do makes having a personal car a bad choice because of the amount of servicing and mileage depreciation. At the same time there are colleagues who live close by so take the money, get the car of their choice and then rub our noses in it because they can claim the tax back on the little business mileage they have to do.

There have been times recently where the amount I can claim doesn't even cover the cost of the fuel, so technically I end up paying out of my own pocket to do business miles (only a little though - not enough to give up the company car)

Cheers,

Nigel
 

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