Advice on tax free allowance of up to £2500 for mileage, tools and PPE.

[Matthew Garside]

I am on the books at a firm as "transport provided" but very regularly use my own car with no mileage paid whatsoever, only single time rate after 15 miles one way. I also provide the majority of my own hand tools and power tools, as well as things like work pants.

I understand you can do a self assessment as a PAYE paying employee for tax relief for amounts under £2500, to cover the cost of mileage, maintenance, tool and clothing replacement, and can get your tax code changed as well as claiming tax back for up to 5 years?

Can anyone clarify this or offer any advice on the matter in general?

 

[Andy78]

Is the firm a JIB firm paying JIB rates ? If so you should be getting "own transport" rates instead of "transport provided"
Any use of your own vehicle apart from commuting to and from work when not being recompensed for it should be refused by you. They either give you a van to use or pay you to cover vehicle costs.

 

[Matthew Garside]

Is the firm a JIB firm paying JIB rates ? If so you should be getting "own transport" rates instead of "transport provided"
Any use of your own vehicle apart from commuting to and from work when not being recompensed for it should be refused by you. They either give you a van to use or pay you to cover vehicle costs.

Believe me, I would rather be "own transport". Vans are provided but they do not have enough for everyone. The site I am now has one six seater van and 12 lads. No travel time paid as it is under 15 miles from the yard and mileage is never paid in general. They are not JIB registered and follow the guidelines at times.

I understand that is a dispute for me to have with the firm but believe me when I say it would get me nowhere.

I am really looking for advice on how it is possible to claim back for the mileage to an unfixed place of work (I believe it is 40p per mile) as well as claiming for replacement PPE, hand tools and drills etc which I provide myself. I believe you can claim upto £2500 by self assessment. As I have always beem on the books and had tax taken care of I am not familiar with how this works.

 

[DPG]

Also make sure you have got the appropriate cover on your car insurance - a normal policy will not cover this use.
Daz

 

[Midwest]

I worked for a similar employer who I did my apprenticeship. I left them when I became qualified

If you suggest you can make up to £2500 in less tax, I would consult an account, which should cost you up to £500. You could even ask the taxman, if you can be arsed to wait on the phone to speak to one of them!

 

[Andy78]

Tax relief for employees - GOV.UK - https://www.gov.uk/tax-relief-for-employees/how-to-claim

 

[snowhead]

You'll need documentation for everything you claim.
Fuel receipts.
Log of business mileage on a daily basis and private mileage.
Receipts for everything else you claim.
You may need a statement from your employer to say you were not provided with transport.

HMRC won't just give you cash for free.

 

[Midwest]

HMRC won't just give you cash for free.

They do me, they give me a tax rebate. Then 2 years later say I haven't paid enough tax. They have twice told me I was still working for an employer I retired from 4 years ago and gave me an emergency tax code. Having spent an hour each time on the phone to them 'computer says no', for them to say 'oh yes, I see now you retired in 2013'!

Flipping tax man.

 

[snowhead]

Same as me.
I usually get an unexpected refund early in the year due to "Review of previous years"
To be told later in the year I owe £--- and the following years Tax code has been revised as my primary income isn't sufficient to cover it.
This year 16/17 it was £9k, I'm expecting the second letter any day now.

However that refund was not instigated by me.
Try claiming one and it's a million questions.

 

[Wilko]

Anyone can register and complete a tax return. In many countries it is compulsory for everyone. Once registered you are able to personalise your returns and this could be an advantage. It's worth looking into if you are required to travel from depot to different work sites, but you can't claim for simple commuting to depot, for example. And you need to keep a little log book of date, start finish locations, purpose, miles.

 

[sparksburnout]

They do me, they give me a tax rebate. Then 2 years later say I haven't paid enough tax. They have twice told me I was still working for an employer I retired from 4 years ago and gave me an emergency tax code. Having spent an hour each time on the phone to them 'computer says no', for them to say 'oh yes, I see now you retired in 2013'!

Flipping tax man.

But did you give them your correct name of George?

 

[Midwest]

But did you give them your correct name of George?

Give up on the George thing, before it consumes you

 

[sparksburnout]

Give up on the George thing, before it consumes you

My soul is already lost. Beer, sex, rock and roll.
Well, 2 out of three ain't bad?

 

[Matthew Garside]

Anyone can register and complete a tax return. In many countries it is compulsory for everyone. Once registered you are able to personalise your returns and this could be an advantage. It's worth looking into if you are required to travel from depot to different work sites, but you can't claim for simple commuting to depot, for example. And you need to keep a little log book of date, start finish locations, purpose, miles.

You'll need documentation for everything you claim.
Fuel receipts.
Log of business mileage on a daily basis and private mileage.
Receipts for everything else you claim.
You may need a statement from your employer to say you were not provided with transport.

HMRC won't just give you cash for free.

I wasn't expecting free cash but I was wondering about how strict they are with the documentation. I wasnt aware I could do a self assessment until recently so havent kept receipts etc and if I made a log book it would not be 100% accurate. I think my best bet is to be more organised from here on in.

A colleague of mine has had his tax code changed permenantly to account for his spending. Do you know whether this is normal or whether I am likely to have to undertake log books etc and do a self assessment every year?

 

[Wilko]

Re tax codes - many ways to skin the cat - I did one return and HMRC kindly suggested a code that minimised tax so that over the next year (with the same circumstances) I wasn't out of pocket.
Re mileage - understanding you don't have complete records, but since April 2016 what can you recall? Maybe you can recall trips to jobs, prompted by invoices, emails, calendar etc. It doesn't have to be a complete record, just accurate for what you claim. If one does get any allowance from employer this will need to be deducted. Hope that helps