HMRC £100 fine late return.

[bjt]

:|My wife is a Carer who uses her car to visit clients homes. She's employed by an agency, but, doesn't receive a fuel allowance. She went on the HMRC website and filed what she thought was the appropriate form for claiming fuel allowance. She was told she would have to fill in a tax return form that would also include an expenses form.

Being PAYE she had never had to do this before. So, she fills in the form, sent it off, and the next thing is she gets a letter telling her because she put her form in late,she had incurred a £100 fine and had (I think) 14 days in which to pay or it would increase on a daily basis! The fine was paid within the 14 days.

We're still not sure how to make the fuel allowance claim as the HMRC sent everything back to her. Also, should she have been fined as an PAYE claimant.

The mind boggles!

[unclebulgaria67]

:|My wife is a Carer who uses her car to visit clients homes. She's employed by an agency, but, doesn't receive a fuel allowance. She went on the HMRC website and filed what she thought was the appropriate form for claiming fuel allowance. She was told she would have to fill in a tax return form that would also include an expenses form.

Being PAYE she had never had to do this before. So, she fills in the form, sent it off, and the next thing is she gets a letter telling her because she put her form in late,she had incurred a £100 fine and had (I think) 14 days in which to pay or it would increase on a daily basis! The fine was paid within the 14 days.

We're still not sure how to make the fuel allowance claim as the HMRC sent everything back to her. Also, should she have been fined as an PAYE claimant.

The mind boggles!

 

Under PAYE you have to follow the employers expense claim back system, which the employers should have fully explained. You basically get paid based on estimated mileage as far as I know, so you only receive what is relevant to use of the car for work purposes. You should also be able to claim any additional insurance costs.

 

This is based on knowledge that might be out of date. But if I ever incurred expenses such as this when using my own car for work i.e to get to an event somewhere beyond normal work commuting distance I would simply be reimbursed mileage at a set rate to cover fuel, wear and tear on the car etc.

 

Best to speak to the employers about this issue, as they will be fully aware and deal with it on a regular basis. If the tax rules now require completion of a seperate tax return, I would expect a good employers to have explained this to their employees and provided some information about exactly what needs to be done by when.

 

If HMRC have got this wrong due to a misunderstanding make a complaint and request the £100 back.

 

https://www.gov.uk/expenses-and-benefits-business-travel-mileage

[bjt]

Thanks very much for your quick response. Yes, your right about the estimated mileage, but, didn't realise your company could help you there. Also, didn't realise about the additional insurance premium.

I'll get her to talk to her company and contact HMRC.

Thanks again.

BJT.

[SoggyMoggy]

If your employer doesn't pay you mileage allowance, or only part of it, than you can claim from HMRC using a P87 form. This is as long as the costs are less than £2500 per year. https://www.gov.uk/tax-relief-for-employees/business-mileage-fuel-costs

 

I am not paid the full allowance by my employer so I claim the extra from HMRC every year.

[sgtbush]

It sounds like the HMRC have put you down to self assess as well as be paye.