Are you a UK-based employee who uses your personal vehicle for work-related travel? You may be eligible to claim mileage expenses from HMRC. To make this process straightforward, HMRC provides a mileage claim form, also known as P87. Let's delve into the details of this form, guiding you through the process of claiming mileage expenses.
Before we dive into the form, it's crucial to understand that you can only claim mileage expenses if your employer has agreed to pay them. If you're unsure, consult your employer's policy on business travel expenses. Now, let's explore the HMRC mileage claim form in detail.
Understanding the HMRC Mileage Claim Form (P87)
The HMRC mileage claim form, P87, is a simple, one-page document designed to help employees claim tax relief on their business travel expenses. It's essential to note that you can only claim for the business use of your vehicle, not for personal use.
You can download the P87 form from the HMRC website or request it from your employer. Once you've filled it out, send it to your employer, who will then submit it to HMRC on your behalf. Now, let's look at the sections of the form in more detail.
Section 1: Your Details
In this section, you'll need to provide your full name, National Insurance number, and the tax year for which you're claiming. Ensure all details are accurate to avoid any delays or errors in processing your claim.
If you're claiming for more than one vehicle, you'll need to fill out a separate form for each. Make sure to keep your forms organized to avoid any confusion.
Section 2: Vehicle Details
Here, you'll need to provide details about the vehicle you're using for business travel. This includes the make and model, registration number, and the type of fuel it uses (petrol, diesel, electric, etc.).
You'll also need to state whether you're the owner or the driver of the vehicle. If you're not the owner, you'll need to provide the owner's name and address.
Calculating Your Mileage Expenses
Once you've filled out the form, it's time to calculate your mileage expenses. HMRC allows you to claim a set rate per mile for business travel. The rate varies depending on the type of vehicle and the distance traveled.
For cars and vans, the rates are as follows (as of 2021/22 tax year):
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- First 10,000 miles: 45p per mile
- Next 5,000 miles: 25p per mile
- Over 15,000 miles: 12p per mile
For motorcycles, the rate is 24p per mile, and for bicycles, it's 20p per mile.
Claiming for Fuel Costs
If you're claiming for fuel costs, you'll need to provide evidence of your expenditure. This could be in the form of receipts or invoices. You can claim the actual cost of the fuel, or you can use HMRC's advisory fuel rates.
The advisory fuel rates vary depending on the type of vehicle and the distance traveled. You can find these rates on the HMRC website.
Claiming for Other Expenses
In addition to mileage and fuel costs, you may also be able to claim for other expenses related to your business travel. These could include parking fees, tolls, or ferry fares.
To claim for these expenses, you'll need to provide evidence of your expenditure. This could be in the form of receipts or invoices.
Remember, it's essential to keep all your receipts and records safe, as HMRC may ask to see them at any time. Also, you can only claim for expenses that you've actually incurred, so make sure to keep a record of all your business travel.
Filling out the HMRC mileage claim form doesn't have to be a daunting task. By understanding the form and the rules around claiming mileage expenses, you can ensure that you're getting the tax relief you're entitled to. So, if you're a UK-based employee using your personal vehicle for work, don't miss out on your mileage expenses. Fill out your P87 form today and start enjoying the benefits!