Mileage Expenses of Less than 40p per Mile

Newsletter issue - August 08.

If you receive less than 40p per mile from your employer for using your own car on business journeys you can claim the extra back from the tax office. Many public sector employers, such as local authorities, do pay less than 40p per mile but their employees may well have to undertake long business journeys to attend compulsory training courses.

If you are in that position you need to calculate the total of the mileage expenses you received in the tax year, and the maximum due using the HMRC rates. Say you claimed for 1500 miles at 25p you will have received £375 (1500 x 25p), but using the HMRC rate of 40p you could claim a further £225 against your taxable income (1500 x 40p £375). You can make that claim on the employment pages of your tax return. Or if you don't complete a self assessment tax return you can simply write to the tax office that issues your PAYE code with the details of your claim. To make this easier HMRC have produced a claim form P87. You can also submit claims for the last six tax years back to 2002/03.

What our clients say about us...

  • "Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."

    ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT

  • "I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."

    Neil Price - Managing Director at Work Relief Charity Recruitment

  • "Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"

    Lee Westrap MBCS - Director - Bulldog IT Services

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Booth & Co  |   The Hermitage  |   15a Shenfield Road  |   Brentwood  |   Essex  |   CM15 8AG        Telephone: 01277 224666    |   Email: info@boothandco.co.uk