Can Employee claim additional expenses?

Can Employee claim additional expenses?

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Hello,

From the following example, can additonal expenses be claimed regarding the employee's use of own car in the course of his employment:

1. The employee is remunerated by means of a basic salary and car allowance (which is taxed in the same manner as the basic salary).

2. In addition to the above, he is repaid expenses (per Section 336) of £5902.92, incurred in the course of performing his employment.  But these expenses only include a charge of 17 pence per mile (of around 8000 miles travelled in total).  Within his Self Assessment Tax Return, for the year ended 5 April 2011, can he now claim an additional expense, by means of the difference between this 17 pence received and the standard mileage rate of 40 pence; now claiming releif for £1840 (8000 miles at 23 pence)? 

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By Swedish Chef
23rd Jan 2012 06:51

Providing that.......
......there are no other motoring costs included within that reimbursement figure then yes.

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Man of Kent
By Kent accountant
24th Jan 2012 23:06

Yes, but...

...does this employee have to complete a tax return?

As expenses on which tax relief is being sought are less than £2,500 (8,000 miles x [40-17]23p = £1,840), why not claim via a P87

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