Tax refund or not a Tax refund?

[Diddy]

Well, I've not been on the forum for some time now, but a year and a half in and everything is going well and I am loving the new found freedom that the IVA has given me, when I look back at the years of robbing Peter to pay Paul and sleepless nights wondering which card was going to pay the minimum balance on which other card or loan that week it really does make me wonder why I kept my head buried in the sand for so long. Pride I guess.

Anyway, I'm after a little advise and am hoping someone may be able to help. At the start of the financial year some of the tax systems changed around company mileage claims, it used to be the case that you got either a business mileage rate if you had a company car or a car allowance or a private mileage rate if you didnt. If you got the former then you could put in a claim each year to reclaim the tax on the difference between the two rates.

Now it appears that companies can apply this at source so you no longer have to submit a separate HMRC claim, this isn't done as a change in tax code or anything like that its made as a separate allowance payment. This month is the first time this has really kicked in and luckily they have backdated the payments to the previous financial year. So my question is this how would the experts treat this payment, is it classed as a tax refund (which i guess technically it is) and hence a windfall with 100% going to the agreement or is it treated as a bonus or additional allowance payment or something different? I've already emailed my IP (just waiting for a response), but it never hurts to get a few more peoples opinions.

Thanks

[Broke of London]

Interesting! I suppose would be treated in the same way as it was when you submitted a claim to HMRC. Have a chat to your IP.