If you're a UK taxpayer who uses your personal vehicle for business travel, you may be eligible to claim tax relief on the associated mileage costs. The HMRC private mileage claim form, P87, is the tool you'll need to submit your claim. But what exactly is it, and how do you go about filling it in? Let's dive into the details.
Before we start, it's crucial to understand that you can only claim mileage allowance relief if you've paid tax on the income used to fund the travel. Also, you can't claim for travel between your home and your permanent workplace, as this is considered a normal commute. Now, let's explore the P87 form in detail.
Understanding the P87 Form
The P87 is a simple, one-page form designed to help you calculate and claim your mileage allowance. It's available to download from the HMRC website or you can request a paper copy. The form is divided into sections, with clear instructions on how to fill it in.
It's important to note that you can only use the P87 form to claim for the current tax year. If you want to claim for previous years, you'll need to contact HMRC directly.
Filling in the P87 Form
Let's walk through the form step by step:
- Your details: Start by filling in your full name, National Insurance number, and address.
- Vehicle details: Next, provide details about the vehicle you're using, including make, model, and engine size.
- Mileage details: Here, you'll need to calculate the total business miles you've traveled in the tax year. Remember to exclude any travel between your home and permanent workplace.
- Claiming mileage allowance: Use the HMRC approved mileage rates to calculate your allowance. The rates vary depending on the type of vehicle and the number of miles traveled.
Submitting Your Claim
Once you've filled in the form, you can submit it to HMRC. If you've downloaded the form, you can post it to HMRC or send it via their online service. If you've requested a paper form, you can only post it back to HMRC.
After HMRC processes your claim, they'll adjust your tax code to reflect your allowance. This means you'll pay less tax over the year, effectively giving you your allowance.
Keeping Records
HMRC may ask to see your records to support your claim at any time. Therefore, it's essential to keep detailed records of all your business travel, including dates, destinations, and mileage.
You should also keep records of any receipts or invoices related to your business travel, such as fuel or parking costs. These can be used to support your claim and may also be eligible for additional tax relief.
Claiming for Other Business Travel Costs
While the P87 form is primarily for claiming mileage allowance, you can also use it to claim for other business travel costs, such as:
- Public transport costs
- Hotel and meal costs
- Tolls and congestion charges
To claim for these costs, you'll need to provide receipts or other evidence to support your claim.
Remember, the key to successful tax relief claims is accurate record keeping. Always keep detailed records of your business travel and any associated costs. This will not only help you claim the correct amount of tax relief but also protect you in case of an HMRC enquiry.