Reclaim business expense when employed

Reclaim business expense when employed

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I understand that an employee may claim the difference between allowance paid by company and HMRC allowance.  He is paid 17p per mile - can he claim difference between this and 45p per mile for first 10k miles and them difference up to 25p? If he can is it via business expense on tax return and how many years can he go back?

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By taxhound
21st May 2014 15:52

tax relief on the difference

He can claim tax relief on the difference between what you pay him and 45p/25p per mile.

He can go back up to 4 years with a claim - so earliest year still open now is 2010/11.

If he files a tax return, the claim should be made on here.  For earlier years he would need to file an overpayment relief claim.

If he does not file a tax return, as long as the claim does not exceed £2500 in a year, you can claim using form P87 which can be found here:

http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=lNKqI3HRKkQ&f...

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