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In Amara Akhtar v HMRC [2020] TC7646, the First Tier Tribunal (FTT) found that a mobile care workers' mileage allowance relief claims were inaccurate but that the penalties charged should be reduced and suspended.

Mrs Akhtar was a mobile care worker. As she received no mileage allowance from her employer she claimed mileage allowance relief on her travel to visit clients and run errands for them at the approved mileage rates over a four-year period.

The FTT found, based on the evidence presented, that the correct allowance mileage figures were higher than those used by HMRC to amend Mrs Akhtar’s tax returns but were still not the figures included by Mrs Akhtar in her returns. The PAYE figures in her returns did not agree to her P60’s and were also wrong.

The FTT said HMRC’s decision not to suspend the penalties was flawed and ordered HMRC to suspend them all.

The tribunal reduced Mrs Akhtar’s penalties from £9,738 to £4,512, moving them from payable within 30 days to suspended indefinitely, as long as she met the conditions of suspension. It was also able to reduce the tax due by £722 as a result of the judge's recalculation of the mileage claims. 

Links

Travel (summary for employees)
This guide summarises the basics for employees. 

Travel (employer's guide)
A detailed guide for employers on employee travel expenses

Authorised mileage rates (own vehicle)

Subsistence (employees)
What is subsistence? Subsistence is the tax term for food and drink. It is an expense that is normally incurred in conjunction with allowable business travel or a business trip including accommodation.

Penalties: Errors in Returns and Documents (subscribers)
What penalties apply if you make an error or mistake? How are penalties calculated? How do you check penalties? What can you do if you receive a penalty?

External link

Amara Akhtar v HMRC [2020] TC7646