Tax relief on company fuel/ mileage with a company car
Discussion
Hoping someone can help me out for this one.
I have for the past 3 years run a company car and cover on average of around 700 a month. My company pay me a flat rate of 11p a mile as reimbursement for these miles.
There is a discussion in the office that I maybe able to claim back the remaining 35p a mile tax relief from HMRC even though its a company car.
Is this correct??
I have for the past 3 years run a company car and cover on average of around 700 a month. My company pay me a flat rate of 11p a mile as reimbursement for these miles.
There is a discussion in the office that I maybe able to claim back the remaining 35p a mile tax relief from HMRC even though its a company car.
Is this correct??
Eric Mc said:
Pence per mile claims from HMRC are based on employees using THEIR OWN CARS.
Per HMRC's own website -
Mileage Allowance Payments
Mileage Allowance Payments (MAPs) are what you pay your employee for using their own vehicle for business journeys.
this was my understanding, however, a questionnaire on the .GOV website outlines this differently. My company chooses to pay the 11p a mile, and apparently, I can claim the difference back myself.Per HMRC's own website -
Mileage Allowance Payments
Mileage Allowance Payments (MAPs) are what you pay your employee for using their own vehicle for business journeys.
This is from the .GOV website:
Tax relief for fuel when using a company vehicle
If you pay for fuel when using a company vehicle for business travel you can get tax relief on fuel costs, less any payments repaid by your employer and covered by a 'dispensation'. You must keep a record of your business mileage to calculate your expenses
Tax relief for fuel when using a company vehicle
If you pay for fuel when using a company vehicle for business travel you can get tax relief on fuel costs, less any payments repaid by your employer and covered by a 'dispensation'. You must keep a record of your business mileage to calculate your expenses
The maximum an employer can pay to an employee for fuel if the employee has a company car but the employee pays for the fuel - is 11p per mile.
If your employer is paying you 11p per mile, that's it - no more cl;aims possible.
If the employer only paid you (say) 5p per mile for the fuel you were paying for out of your own pocket, you could make a claim for the missing 6p from HMRC.
Don't forget, the claim from HMRC is not a claim for the actual mileage. It's a claim for tax relief on the mileage.
If you had done 5,000 business miles in a company car but were paying for the fuel personally and the employer was paying mileage at 5p per mile, your employer would have paid you £250 (5,000 x 0.05p).
You would then make a claim to HMRC for 5,000 @ 0.06p per mile i.e. £300.
HMRC will not, of course, give you a refund of £300. They will refund to you (or adjust your PAYE coding accordingly) the tax reduction you are entitled to on a mileage claim of £300 i.e. £60 (£300 @ 20%) or £120 (£300 @40%) or £135 (£300@45%) - depending on your top rate of Income Tax.
If your employer is paying you 11p per mile, that's it - no more cl;aims possible.
If the employer only paid you (say) 5p per mile for the fuel you were paying for out of your own pocket, you could make a claim for the missing 6p from HMRC.
Don't forget, the claim from HMRC is not a claim for the actual mileage. It's a claim for tax relief on the mileage.
If you had done 5,000 business miles in a company car but were paying for the fuel personally and the employer was paying mileage at 5p per mile, your employer would have paid you £250 (5,000 x 0.05p).
You would then make a claim to HMRC for 5,000 @ 0.06p per mile i.e. £300.
HMRC will not, of course, give you a refund of £300. They will refund to you (or adjust your PAYE coding accordingly) the tax reduction you are entitled to on a mileage claim of £300 i.e. £60 (£300 @ 20%) or £120 (£300 @40%) or £135 (£300@45%) - depending on your top rate of Income Tax.
Eric is correct - the 45p per mile tax allowance is based on using your own car.
Company cars are restricted to the cost of fuel only - if the company is paying 11p per mile then you can only claim relief if you can prove that the fuel cost is more than 11p per mile to you - if you kept all your fuel receipts (bet you didn’t) and knew the mileage at start and end of a year (you might not know they either) you could calculate the actual cost per mile. If it came to say 13p per mile that would mean you could claim tax relief on the difference of 2p. Which may not be worth it and I am not sure if you are bound by the company choosing to pay a particular rate. (A few years ago, I worked for a company that provided a fuel card and I paid for private miles, so I got a rate different from the standard rate)
Company cars are restricted to the cost of fuel only - if the company is paying 11p per mile then you can only claim relief if you can prove that the fuel cost is more than 11p per mile to you - if you kept all your fuel receipts (bet you didn’t) and knew the mileage at start and end of a year (you might not know they either) you could calculate the actual cost per mile. If it came to say 13p per mile that would mean you could claim tax relief on the difference of 2p. Which may not be worth it and I am not sure if you are bound by the company choosing to pay a particular rate. (A few years ago, I worked for a company that provided a fuel card and I paid for private miles, so I got a rate different from the standard rate)
Advisory Fuel Rates vary depending on cubic capacity and fuel type of company car:
https://www.gov.uk/government/publications/advisor...
https://www.gov.uk/government/publications/advisor...
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