Company car and mileage
Discussion
I have a company car on which I pay tax.
I have a question around mileage.
My company pay me 10p per mile. I pay for the fuel and they pay me for the miles i do. I do not get paid for personal miles.There is a debate amongst colleagues as to weather we can claim tax relief on the difference between the 10p and 45p the gov say. I know you can do this if it's your own car but the debate is can you do it with a company car.
Several colleagues have done it and been given a rebate in the past but others are saying that's a mistake and they should pay it back.
I have a question around mileage.
My company pay me 10p per mile. I pay for the fuel and they pay me for the miles i do. I do not get paid for personal miles.There is a debate amongst colleagues as to weather we can claim tax relief on the difference between the 10p and 45p the gov say. I know you can do this if it's your own car but the debate is can you do it with a company car.
Several colleagues have done it and been given a rebate in the past but others are saying that's a mistake and they should pay it back.
As above.
It's a frustrating situation to be in, as I'm guessing the 10p / mile doesn't actually cover the cost of running the car, so you end up funding company miles out of your own pocket. I had a similar situation about 10 years ago when I was getting 11p / mile for a Focus 1.6TDCI. It was even worse when I ended up with a Golf GT-TSI, as I could only claim our under 1.4 litre rate and had a car that burned fuel like a 2.0!
It's a frustrating situation to be in, as I'm guessing the 10p / mile doesn't actually cover the cost of running the car, so you end up funding company miles out of your own pocket. I had a similar situation about 10 years ago when I was getting 11p / mile for a Focus 1.6TDCI. It was even worse when I ended up with a Golf GT-TSI, as I could only claim our under 1.4 litre rate and had a car that burned fuel like a 2.0!
SS2. said:
If it's a company vehicle, run and maintained by the company, you can't claim 'Mileage Allowance Relief' on any difference between HMRC's approved mileage amounts and the 10p / mile your company reimburses you for fuel.
That's how I understand it also.The AMAP higher mileage allowance is provided to meet the extra cost of using your own personal car for business, whereas with a Company Car, your employer bears those.
Effectively you can't have your cake and eat it i.e. getting the benefit of a Company Car, but taking the higher AMAP mileage rate also.
As I understand it, claiming Mileage Allowance Relief is for when you operate your own personal car for business, but your Employer pays you less than the maximum AMAP rate of 45p per mile (first 10,000 miles)/25p per mile (miles > 10,000) - in that case, you can claim tax relief on the difference.
Similar, but with a twist.
I work for a sister company to a dealership group, and benefit from an Employee Car Ownership Scheme.
I own the car outright, I pay a benefit in kind on the insurance, wear and tear, road tax and the interest free loan to purchase the car.
My grade comes with a fuel card for business use only, and you repay personal mileage.However I never ended up receiving a fuel card, and explained to my line manager it was more beneficial for me not to have one and he agreed. So I get 45p per mile for business for a car I change every 3-4 months.
Other people on my grade however that have a fuel card, only get 33p per mile, and they do technically own the car, so should they be able to claim the 12p back from HMRC?
I work for a sister company to a dealership group, and benefit from an Employee Car Ownership Scheme.
I own the car outright, I pay a benefit in kind on the insurance, wear and tear, road tax and the interest free loan to purchase the car.
My grade comes with a fuel card for business use only, and you repay personal mileage.However I never ended up receiving a fuel card, and explained to my line manager it was more beneficial for me not to have one and he agreed. So I get 45p per mile for business for a car I change every 3-4 months.
Other people on my grade however that have a fuel card, only get 33p per mile, and they do technically own the car, so should they be able to claim the 12p back from HMRC?
Dave350 said:
Other people on my grade however that have a fuel card, only get 33p per mile, and they do technically own the car, so should they be able to claim the 12p back from HMRC?
Common misconception, you can never claim the full difference back from HMRC between what you get paid and 45p.What you can claim is tax relief on the difference. So in the example above you can claim 20% (or 40% if you're a higher rate taxpayer) on the 12p e.g. 2.4p or 4.8p,
E&OE. YMMV.
QuartzDad said:
Common misconception, you can never claim the full difference back from HMRC between what you get paid and 45p.
What you can claim is tax relief on the difference. So in the example above you can claim 20% (or 40% if you're a higher rate taxpayer) on the 12p e.g. 2.4p or 4.8p,
E&OE. YMMV.
Sorry that was implied, although not clear in my message! What you can claim is tax relief on the difference. So in the example above you can claim 20% (or 40% if you're a higher rate taxpayer) on the 12p e.g. 2.4p or 4.8p,
E&OE. YMMV.
Whistle said:
Spanner in the works,
I have a PHEV and I fully charge it every night at home.
So I am paying for quite a bit of the fuel.
Assuming it’s a company car you pay very little BIK compared to a Petrol / Diesel and you stillI have a PHEV and I fully charge it every night at home.
So I am paying for quite a bit of the fuel.
claim a standard pence per mile for business miles? Assuming the electric cost is cheaper than Petrol you’re still better off?
On the other hand, if you have a fuel card you’re better off not charging it.
survivalist said:
Assuming it’s a company car you pay very little BIK compared to a Petrol / Diesel and you still
claim a standard pence per mile for business miles? Assuming the electric cost is cheaper than Petrol you’re still better off?
On the other hand, if you have a fuel card you’re better off not charging it.
We are currently embroiled in this debate. There’s no way to charge electric back to the business but they say the BIK saving covers it.claim a standard pence per mile for business miles? Assuming the electric cost is cheaper than Petrol you’re still better off?
On the other hand, if you have a fuel card you’re better off not charging it.
There are 2 answers to this. All your private mileage now becomes electric, so no paying back private use at HMRC rates anymore.
Alternatively or I addition, some fuel cards are going contactless so you can use rapid chargers.
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