claiming milage relief to and from work

Discussion in 'AGC, RAPTC and SASC' started by grandmaster, Aug 28, 2007.

Welcome to the Army Rumour Service, ARRSE

The UK's largest and busiest UNofficial military website.

The heart of the site is the forum area, including:

  1. please help, i believe i can claim tax relief on commuting to and from my home to my place of work, i have filled the forms in and got a snot-a-gram from the tax office saying that postings on ops are part of your postings whilst in the uk within a tour! is this correct and is there any work around for it. i am new to this so please help

    further information to this enquiry, is that the tax office said i can not claim this for more than a 24 month temporary posting, are all postings temporary, and i still enquired that within a 24 month posting and more, that i went away on op tours and obviously i was detached from the unit and posted into other countries, whilst carrying out ops. so is there any advice on what to say to the tax office on what to do about this problem. i have been told no by the tax office! so any advice or solutions please reply
  2. Welcome to the site, Grandmaster. I think you are muddling a couple of issues but we'll tease those out later.

    I am not aware that you can claim tax relief for home to duty travel aka "commuting". The Revenue's response is the standard "everybody travels from home to work and back..."!

  3. Re the IR, the phrase is something along the lines of "travel to permanent place of work," so the routine daily trudge doesn't allow you to claim anything back. From a civvy point of view, if your job requires you to travel to different places regularly, then there is a different regulation. It sounds akin to the rules for freeloading on PAYD - so with a military bent, there may be some argument that if you're travelling to a course, then the journey becomes tax-deductable. But then again, wouldn't such travel costs be claimable in entirety by the soldier with any interest in claiming tax back resting with Glasgow as a rebate in the Defence budget?
  4. Yes you can.

    I contacted the HM Revenue and Taxes only the other week regarding this.

    The Govt allows 40p per mile for travel, and for example service personnel claim 22p per mile. We in effect can claim the 18p difference.

    There is a particular form service personnel to complete, which I do not have to hand at this moment. You can claim as far back as 6 yrs, but have to have documentary evidence of having these claim for auditing purposes, which most of us dont, as it goes direct into our bank accounts.
  5. I was hoping that GM would respond before we were sidetracked... but we'll chase this rabbit...

    I can claim tax relief on the difference between the HMRC mileage figure (45p/mile?) and the rate the MOD pays. But, IIRC, I can't claim tax relief on journeys for a training course (education...) or medical. So, if my work requires me to travel from my MQ to another site, which is not my normal place of work, I can claim from the Army for the trip.

    That pays out at roughly 22p/mile. The HMRC rate is 45p/mile (say) and the difference is 23p. Assuming this is work related, I can then claim back the tax I would otherwise pay on that 23p - which for basic rate taxpayers is about 5p/mile.

    The downside is that, almost certainly, HMRC will hit you with a full tax return if you decide to claim. Your insurance company must be told that you are travelling on business - and may hit you with increased premia.

    If you claim HDT - because your MQ is more than a certain distance from your normal place of work, you cannot claim any tax relief.

  6. No.... you can claim the tax that you paid on that sum.

    But the good news is that you now have to keep your travel claims for audit anyway - and 6 years is a good period. How many postings and op tours is that for your average soldier, these days???

    Most soldiers I know are incapable of keeping any paperwork for more than 10 minutes!

  7. Until the advent of JPA expenses claims, your FSA recorded your MMA claims on a form AF O1874 to provide information for tax purposes. Get a copy off him.

    I always thought it was a lot of work for the very few people who might request the details but that's a whole different thread.
  8. 10 Seconds more like!!
  9. As already stated above, you can tax relief on the differecne between your MMA and the 40p the governemt allows. All you need is a letter. I have just started work for a consultancy firm and claim milage everywhere, my firm recently sent me this letter, predrafted by my Finace section to simply forward to the tax office. Hope this helps

    To: <Insert Tax office here>

    From: < Your name, address, Tax reference and NI number>

    Dear Sirs,

    Re: Employees S197AF ICTA1988 business milage comparison 2006/2007

    Per Leaflet IR24 - 'Using your own vehicle for work', I am providing a calculation of tax relief relating to reimbursed business mileage.

    (The followings is in a table, I have used : to signify columns forgive my lax formatting)

    Total Businiess miles travelled: (1) : 370
    First 10,000 miles : (2) : 370 : Business miles at : 40ppm: 148.00 : (4)
    Over 10,000 : (3) : : Business miles at : 25ppm : : (5)
    Total Business miles reimburesed : : : : A : 148.00 : (4+5)
    Total mileage allowance payments recieved : : 0.20 : ppm : B : 74.00 :
    : : : :Difference between A and B : : 74.00

    : : : :Total Milage Allowance Relief : : 74.00

    (End of crap table formatting)

    I hereby claim net tax relief under Section 197AF ICTA1988 for business milage reimbursements at less than the set AMAP rates throughout the course of the whole tax year.
    I would be grateful if you would adjust my tax code for the current year to allow for the tax relief i am claiming. I would be grateful that this relief is reflected in any assesments neccesary for the previous tax year

    Yours sincerely