TAX RETURN -confused about expenses

Oct 30, 2004 4 Replies
P

OK. For the tax year ending April 2004, I got paid a total £1,342.29 in expenses from my employer. This included 3326 miles at a rate of



23p per mile.

How exactly does this fit in with my tax return? I've heard I'll get the extra 17p per mile (to make it up to 40p) as an allowance from the IR? Is this true?



I'm confused because my P11D from my employer is for a total of £518.39 and they've given me a letter to send to the IR about expenditure incurred soleing in the performance of my duties.



Also, I think my 2003 return is wrong as well


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T

You need to make a claim for the extra 17p per mile, supported by the letter from your employer. Talk to your tax office.

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N

It's probably worth pointing out that the IR don't actually give you the 17p per mile back, what they give you back is the TAX on the 17p per mile!

What you get back will depend on the tax rate you were paying in the year.

Nick

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P

Think I know what I did wrong on my tax return.

All I entered in the expenses box was the difference between 40p and the rate I'd been paid. Reading the notes again, it seems I've got to add all my other expenses (which are on my P11D) to this figure as well.

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D

For 2003-04 onwards, one only needs to report the *excess* over the approved mileage rates. Therefore, since you were paid less, it does not appear on the P11D.

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