OK so,
I’m about to on 6th April 2014 submit my PAYE Form P87 for expenses in relation to work as a “mobile worker/trader”.
The max you can claim on this form is £2500 and counting up my £10day “meal allowance” and some misc stuff like laundry work gear and buying some quality work boots/gloves (all with receipts kept in box) the total is close to £2.5k max.
If it gets approved by HMRC will I get a cheque for approx £2.5k or a cheque for the “tax relief” on the expenses IE
approx £500 tax year 5th April 2013 to 5th April 2014
For tax year 2014/2015 will HMRC simply adjust my PAYE tax code to allow for these expenses and I’ll not have to submit a P87 for next tax year
limeyphil:
You get the full £2500. Some people think you will only get 20% ish.
You’re talking crap.
The £2500 is taken off your income, the tax due recalculated and you are paid accordingly.
If you’ve not earned enough to pay tax you’ll get nowt.
If you’ve earned £2500 or more over the lower threshold (the tax free amount) you’ll get £500.
If you’ve earned anything in between the two you’ll get back what you’ve paid in income tax up to £500.
IMPORTANT NOTE: When doing your tax credit renewal your income is your gross pay less the amount you claim on the P87. For example if you earn £15,000 and claim £1000 on the P87 your income for all income related benefits or anyone who asks is £14,000. Even if you haven’t earned enough to get any or all of it back still deduct the amount so if you only earned £8,000 which isn’t taxable and you claimed £1000 your income is £7,000.
I did originally compose a long message about how “Every day is a school day, even for accountants it seems!” but it disappeared/crashed/self-deleted!!
If only every penny we spent on expenses was then given back to us all over again in tax rebates!!
limeyphil:
You get the full £2500. Some people think you will only get 20% ish.
Thx Limeyphil appreciated.
Please don’t listen to Limeyphil.
Wasn’t it me that told you all about p87?
There’s ways of doing it and ways of not doing it.
Do it right and you claim the lot.
If you have a tax office locally, then go in and ask. My tax office staff are unbelievably helpful.
limeyphil:
Wasn’t it me that told you all about p87?
No. I was filing P87s for well over a decade, probably before TNUK existed.
There’s ways of doing it and ways of not doing it.
Do it right and you claim the lot.
By “do it right” you mean lie. You cannot “claim the lot”. You can only claim tax relief on the amount you put on the P87 which you’ll get reimbursed at whatever rate of tax you pay that covers the amount claimed.
How is it then that using the dreaded umbrella company and actually working under an agency and going to say three different places to work each week(as “mobile worker/trader” under HMRC regulations) and spending the £10day on meals plus travelling mileage@ 47ppm,
you then have the umbrella offsetting the FULL AMOUNT of expenses EVERY week against your income tax
Also how do the Stobart guys get £15day TAX FREE meal allowance but when I try to claim £10day WITH RECEIPTS
(doing the exact same type of work) I’ll only get the tax relief of 20% on £10day IE £2day back
Big Truck:
How is it then that using the dreaded umbrella company and actually working under an agency and going to say three different places to work each week(as “mobile worker/trader” under HMRC regulations) and spending the £10day on meals plus travelling mileage@ 47ppm,
you then have the umbrella offsetting the FULL AMOUNT of expenses EVERY week against your income tax
Which is exactly the same as doing it via a P87. The umbrella company don’t give you the full amount you claim do they?
Stobarts drivers get the full amount because Stobarts actually pay the tax free allowance as a perk so they get it in addition to their pay. You’re claiming the tax relief because your employer doesn’t pay you this tax free perk but as you are entitled to it you can at least claim the tax relief so you only get 20% of it. Don’t like it, complain to your employer.
mac12:
If you have paid for something why would the tax man give you all the money back instead of just the tax you have paid
If you were self employed and turned over £20,000. It cost you £10,000, You would pay tax on the remaining £10,000 after your tax allowance has been deducted.
As an employee, You have already paid tax, You can claim expenses against any tax you have paid. So if you have paid £10,000 in tax and have £1000.00 of legitimate expenses, Then they will give you £1000.00 back.
Some think it’s the same as tax relief. It isn’t.
But they don’t bother to go to their tax office and check, They don’t even read the numerous links i have put on here. They just say i’m full of crap.
That’s ok, But the ones i’ve helped have gained hundreds of pounds and the keyboard warriors gain nowt.
Big Truck:
How is it then that using the dreaded umbrella company and actually working under an agency and going to say three different places to work each week(as “mobile worker/trader” under HMRC regulations) and spending the £10day on meals plus travelling mileage@ 47ppm,
you then have the umbrella offsetting the FULL AMOUNT of expenses EVERY week against your income tax
Which is exactly the same as doing it via a P87. The umbrella company don’t give you the full amount you claim do they?
Stobarts drivers get the full amount because Stobarts actually pay the tax free allowance as a perk so they get it in addition to their pay. You’re claiming the tax relief because your employer doesn’t pay you this tax free perk but as you are entitled to it you can at least claim the tax relief so you only get 20% of it. Don’t like it, complain to your employer.
The Umbrella company took £ for £ to offset against my income tax each week EXACTLY the amount I was claiming in expenses (mileage/meals) and defo not 20% of my expenses
IE,
I paid about £14week in income tax the year I was signed up to the umbrella.
The monkeys:
As my licence is due for renewal in May, can the medical also be claimed back on the p87 as it is an expense?
Yes but because you only get the tax back you need to decide if it’s worth claiming. I had my medical 2 weeks ago cost £40 so £9 back from tax I got told years ago that it’s better to claim for a couple of big things instead of maybe 20 small ones because if the taxman starts checking who will he go for the man who claims for everything or the man who only claims for 2.
The monkeys:
As my licence is due for renewal in May, can the medical also be claimed back on the p87 as it is an expense?
Yes you can.
Some seem to think you only get 20% of your expenses back. In my experience and the experience of many others, You get the lot back.
I’ve claimed for plenty of things over the years. It took some doing in the early days, The tax office wouldn’t pay anything apart from mileage allowance, But i persevered and they started paying out.
I’ve claimed back for my HGV lessons, Test fee, Medical, Passport and probably loads of other things. They’ve always paid 100% of any claim.
Maybe to shut me up. But i got it.
My tax office is only a short distance from where i live, So i can go in rather than writing, phoning and waiting around for answers.
They are usually very helpful.
The thing to do is put a claim in and let us know how you get on. I’m not sure if those on here that say you only get 20% have actually put any claims in or are sumising without doing anything themselves.
limeyphil:
As an employee, You have already paid tax, You can claim expenses against any tax you have paid. So if you have paid £10,000 in tax and have £1000.00 of legitimate expenses, Then they will give you £1000.00 back.
No they won’t, they’ll give you either 20% or 40% of it back depending on what tax bracket you’re in.
Some think it’s the same as tax relief. It isn’t.
Village idiot doesn’t understand…
But they don’t bother to go to their tax office and check, They don’t even read the numerous links i have put on here. They just say i’m full of crap.
Because you are. All the time.
That’s ok, But the ones i’ve helped have gained hundreds of pounds and the keyboard warriors gain nowt.
By telling them how to fiddle it.
You’re a blithering halfwit. You are by far the most stupid dumbass I have ever met on any forum I have ever been on in the 23 years I’ve been on the internet. Absolutely nothing you say is correct. You are so full of ■■■■ it is beyond belief. I have never ever met a mountain of ■■■■ with a mouth as big as you.
I don’t even think you’re a lorry driver. I think at best you’re a white van man with delusions of grandure.
Worst part is you think that people believe the crap you’re spouting. They don’t. They merely humour you whilst thinking what a sad pathetic excuse of a human being you are.
