p87 help

by **hannah29** on Sat Jun 25, 2011 3:25 pm

Hi
we have being given mixed advice from the tax office for the last 3 months so need some help.
Hubby was working full time permanent on a job and came out of that on 7th april this year. (p45 proof) he filled in his p87 to claim for mileage for 2010/2011, all fine. phoned the tax office to chase it, no problem its being sorted.
Hubby has set up a limited company on the 5th april this year to go self employed, although he did not work as self employed till mid april. they have sent him a self assessment tax letter.
called the tax office on thursday this week re the p87 and was told no problem it will be with you by the beginning of july. On the same day a letter was sent to us from them saying it cannot be paid and we must fill in the self assessment to get it back. this could take months and was to be used to pay the outstanding balance on our summer holiday.
he was not self employed on the 5th april although the company was set up then in preparation to go self employed and as stated he didnt come out of full time work till the 7th april.
they have been telling us since it was sent in april all is fine with the p87 we filled in. we are very confused
any advice????

by **marrow** on Sat Jun 25, 2011 4:09 pm

If your husband hs been issued with a tax return to complete for 2010/11 this must by law be completed with all of his income for the 2010/11 tax year. This will also include the claim for mileage in respect of business miles driven as part of his previous employment. HMRC are correct in that the P87 will not be processed as this claim and repayment will be dealt with as part of the tax return completion for the year.

By completing the tax return online, the repayment due should come through fairly quickly (usually within a couple of weeks of submitting the return).

Assuming that you husband has got all details of his income for the last tax year (P60, P11D, bank interest certificates etc) then if you complete this now (very easy and quick using HMRCs online service), also enter his bank details to claim the repayment as part of the tax return then any repayment due will be credited to the bank account shortly.