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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Any HMRC experts here?

13 replies

sausagerolls9 · 19/07/2021 09:06

Posting for traffic as there isn't a specific number I can call related to this issue.

I started a new job at the beginning of last year which involves a lot of driving in my own car. My employer pays 25p per mile and told me that I could claim the rest (or a percentage? not quite sure) from HMRC. I know some of my other colleagues have done it and they haven't had any issues.

Anyway, I filled out the form online at the beginning of April and sent it off. It said that it would be completed by the 10th of May, but it wasn't and was updated shortly after online saying "your form is taking longer than usual due to technical problems". I didn't really think much of it and thought it would be sorted soon but we're now in July and I've still not heard anything. I've heard from other people that they have a backlog due to Covid which is understandable.

There isn't a number I can call related to this specific issue so I don't know if they will just tell me to carry on waiting. I might give the general helpline a call later though just to see what they say. My cars had to have a lot of repairs recently and the 25p my employer pays doesn't really stretch very far so the extra money from HMRC would definitely come in handy.

Is there anyone on here who works for HMRC or that deals with them often? Any ideas?

OP posts:
BarbaraofSeville · 19/07/2021 09:21

Don't know about HMRCs operations but to clarify on the rate, you don't get the difference from HMRC, you only get tax relief, so equivalent to an extra 4 p per mile if you are a basic rate tax payer, or 8 p if you are a higher rate tax payer.

As you have discovered, the 25 p rate doesn't always cover the cost of extra wear and tear and business insurance on top of fuel costs, so it's quite tight of your employer to expect you to supply your car to cover their business needs without fully reimbursing you.

Is there another option like hire or pool cars, a car allowance or a company car? What would they do if your car was unavailable or you said you didn't want to use it for work any more?

JaceLancs · 19/07/2021 09:26

That’s quite low I get 45p a mile which I thought was standard

sausagerolls9 · 19/07/2021 09:33

@BarbaraofSeville thanks for your message Smilewhen the job was advertised I was told it was 45p a mile, but when I went for the interview and was offered the job they changed their minds and said that they could only pay 25p and that I'd need to claim the rest from HMRC. At the time I really needed the job so just excepted it as I thought when the time came to fill out the form it would be fairly straightforward and simple. Boy was I wrong!!
When I filled out the form back in April it estimated that I was owed nearly 2k (which seems very high) although I do a lot of miles to be fair. If that's the case it would be a nice little sum.

OP posts:
sausagerolls9 · 19/07/2021 09:36

@BarbaraofSeville unfortunately there isn't a possibility of a company car etc. Everyone in the company has to use their own car. If my car broke down, I'd be expected to get the train or bus (although it would take hours as we go from 1 site to the next!)

OP posts:
WutheringTights · 19/07/2021 09:44

In that situation I'd ty writing them a letter with all the numbers clearly laid out and any evidence you need to supply, eg receipts/employment records. Make sure it contains absolutely everything so that they don't need to write back for more info. In the past I've always had refunds through quite quickly after writing to them, but that was pre-Covid to be fair.

user27424799642256 · 19/07/2021 09:44

There will only be additional tax relief on your first 10,000 miles based on your employer's rate. Max mileage payment for first 10k miles is 45p (tax relief for you on 45p-25p), then 25p thereafter so no extra tax relief in your case on those (25p-25p).

This might be why your employer only pays 25p so they don't have to keep track of how many cumulative miles you've done.

sausagerolls9 · 19/07/2021 09:51

@WutheringTights do you think it would be best for me to give the helpline a call today and if no luck I will write to them?

OP posts:
BarbaraofSeville · 19/07/2021 09:54

@user27424799642256

There will only be additional tax relief on your first 10,000 miles based on your employer's rate. Max mileage payment for first 10k miles is 45p (tax relief for you on 45p-25p), then 25p thereafter so no extra tax relief in your case on those (25p-25p).

This might be why your employer only pays 25p so they don't have to keep track of how many cumulative miles you've done.

That is true, but paying the full 45 p on the first 10k miles pa is worth £2k pa to the OP, so she should certainly be given the option of a bit of extra admin in order to access this money.
Kazzyhoward · 19/07/2021 09:56

[quote sausagerolls9]@WutheringTights do you think it would be best for me to give the helpline a call today and if no luck I will write to them? [/quote]
Pointless writing to them. They're taking months to answer letters (if you're lucky) and lots of post doesn't get answered at all. You need to phone them on the general enquiries number. They'll be able to check if they've received your claim, and what processing stage it's at. Be prepared for a long wait in the phone queue - best to phone first thing in the morning or the evening when their phone lines are quieter.

MrsJackRackham · 19/07/2021 09:57

Go on the webchat, I find it easier. There's a huge backlog of post due to teams being seconded onto covid schemes then the compliance work to recover incorrect claims. Writing won't get an answer any quicker, the webchat adviser will be able to give you a timescale for a response.
www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees

FinallyHere · 19/07/2021 10:16

Absolutely, rung them first thing in the noticing, as soon as they open, to talk through what you need to do

Then follow up whatever is required. I would expect that you will be required to do a self assessment tax return, to claim the mileage.

MrsJackRackham · 19/07/2021 10:24

There is absolutely no requirement for an SA return 🙄 I assume you filled out a P87 to claim your milage? That's all you need.

sausagerolls9 · 19/07/2021 10:26

Thanks all, I will give them a ring later today or first thing tomorrow morning when it's quieter. @MrsJackRackham I can't remember the name of the form but I just followed the instructions on the gov website! Smile

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