P87 - Company Car Fuel Tax Relief

[nmj34]

Hi, desperately hope someone can help; here is my situation:

When I first started my job I used my own vehicle and received 40p/per mile from my employer.
I then switched to a company car allowance until my company car arrived.
I now have a company car and am paid 11p per mile. I pay for the petrol myself and am reimbursed by my employer at 11p per mile every month.

I wish to ONLY claim tax relief for the period since I took ownership of the company car. I have happy with the situation while using my own car etc.. and am not owed anything.

I am trying to complete the tax form P87 and have been told by the HMRC helpline that I have to complete Section4 not Section2 because I use a company car not my own vehicle.

Section 4 wants the amount I spent on fuel for the period I am claiming. It also wants the amount I was repaid by my company. I calculate this second figure by multiplying the
mileage I have done in a month by 11p per mile. I have all the figures I need to calculate this for the entire year(s).

However, how do I provide an accurate figure in Section4 for what I paid out initially? If I fill my fuel tank not all that fuel will be used on company mileage. All I have to work
from is the mileage I drove that month. I have not kept petrol receipts going back 4 financial years!! and even if I had I do not see what use they would be as a receipt for £60
cannot be submitted for mileage of only 100miles for example!

I do not know how to accurately work out the amount I spent on business mileage.

Should I work out the average price of petrol for that year and then use the figures along with my average mpg of the car to somehow produce a cost for the mileage I travelled
that year!??

HELP!! I cannot find any detailed info on this precise issue (Section4). I have seen the HRMC website relating to P87 Tax Relief etc.. but there is not enough detail.

Any help appreciated.

[nmj34]

UPDATE: Just managed to speak to HMRC helpline again and this time the person was helpful.

He didnt know the answer to my above predicament and kindly transferred me to the 'Technical Team'

They explained how I calculate figures for Section 4 - I forgot to ask why this detailed calculation isn't documented anywhere on their site!!!

In order to calculate a monetry value for column: "Amount spent on allowable items" you have to:

Work out how much petrol you put in your car in 1 financial year (£) then multiply that by your same financial years BUSINESS mileage then divide the result by the TOTAL car mileage for that same financial year which gives you a new figure (X) you can finally enter!

(X) then gets subtracted from the 'Amount already paid to you" by your employer and this figure (Z) is divided by tax rate (20% or 40%) to produce the relief you will be repaid by HMRC!

Worlds gone mad!

[cambsgirl]

did this all work out?

I am in the same situation and want to make a claim for each year going back to 05/06.

How do I work out how much fuel I put in my car in £s for each year? Take the mileage and multipy by the years average?

I'm so confused

[towat]

I am not familar with form P87, however to work out your fuel costs simply divide the price of a gallon by the average mpg of your car, which may give a cost per mile of say 18p.

You have been paid 11p per mile by your employer so you can claim the additional 7p, you can work out your business mileage from what your employer has paid to you. i.e. if you have received £25 in fuel expenses, divide by 11p gives you 227 miles multiply by 7p means you can claim an additional £15.89p.

It would probably be best to do the calculations monthly to take account of changing fuel costs.

[mullet]

so you can claim the additional 7p

you can claim an additional £15.89p

To be precise, you can claim tax relief on these amounts at your highest rate of tax. You don't literally get the amounts of 7p and £15.89 (as in these examples) from HMRC.

[nikkisizer]

Nikki, the idea of the Forum is to provide initial advice and not just to say "I can help, get in touch". [original content removed - Ed]

[mullet]

Hi cambsgirl,
I can help you should you so wish, I have sent you a PM on this subject.
Kind regards

Is this an open forum, or a place to find new clients? Surely advice should be given in public responses (unless the matter is of a private nature of course).

[cambsgirl]

just to confirm this was in a company vehicle, and i was under the impression for years that i coudnt claim tax relief on this.

I am aware I would only be claiming tax relief on the difference between what my employer has reinbursed me and the maximum HMRC say they can reinburse me.

What I am confused about is where nmj34 says

In order to calculate a monetry value for column: "Amount spent on allowable items" you have to:

Work out how much petrol you put in your car in 1 financial year (£) then multiply that by your same financial years BUSINESS mileage then divide the result by the TOTAL car mileage for that same financial year which gives you a new figure (X) you can finally enter!

(X) then gets subtracted from the 'Amount already paid to you" by your employer and this figure (Z) is divided by tax rate (20% or 40%) to produce the relief you will be repaid by HMRC!

if i am goign to go back to 2005/2006, how do I know how much petrol I put in my car? Does this incluce all petrol

Employers used an online system which meant a seperate payment into my bank account for expenses whith no paper confirmation. This changed some time in 2008 as before this is was detailed on payslip.

I no longer work for this company so I cannot find out why this would have changed. I believe they have closed so I can no longer contact them, but have diaries to refer back to.

[cambsgirl]

Hi cambsgirl,
I can help you should you so wish, I have sent you a PM on this subject.
Kind regards

Is this an open forum, or a place to find new clients? Surely advice should be given in public responses (unless the matter is of a private nature of course).

i didn't respond to PM