Claiming car mileage tax back - Am I correct

[Wolfer]

Hi All,

I have been told I could possibly get back tax relief on what I pay for fuel for business use. If I give you the example of my situation, can someone tell me if i'm correct, as I'm not fully sure I understand.

I am full time employed as a Mobile Engineer.
I use my own car. But do get a small car allowance per month. I have business mileage on my insurance.
The company pay me back 11p per mile for business use. (which doesn't actually cover my what my car uses in diesel!)

I have been told there is an online form I can fill in for the last 3 years that work have sent me all over in my new role.

My example is this.

My average milage per year works out around 22500 miles.
I am paid 11 ppm
Government guidelines seem to suggest 45ppm
Difference is 34ppm
20% (tax) of 34 p is 6.8p
Am I correct in thinking, that I would get 22500 x 6.8p back ( £1530)


Apologies if this has been asked before, or if I'm wrong. Just wondered if anyone else did this?

Thanks

Wolfer

Edit - just doing a bit of searching, that would only be for the first 10k, after that, 25ppm
Meaning 10000 x 6.8p and 12500 x 2.8p total = 1030.....I think.

Edited by Wolfer on Sunday 21st January 15:40

Edited by Wolfer on Sunday 21st January 15:44

[Eric Mc]

HMRC allows a taxpayer tax relief on work related miles incurred in the furtherance of their duties as an employee.

If your employer is paying you 11p per mile (which is utterly and exceptionally mean in this day and age) you can make a claim for the difference of 34p as a deduction against your taxable income by submitting a claim to HMRC.

Note, HMRC will not be repaying you 34p for every business mile you incurred. They will be giving you TAX RELIEF on the claim.

So, if you had 9,000 business miles in the year, your employers will have paid you £990.00 at 11p per mile.

HMRC will allow you to make a claim of 9,000 @ 34p = £3,060. They will not repay you £3,060.

If you are a basic rate taxpayer, they will repay you £612 (£3,060 @ 20%). If you are a higher rate taxpayer, they will repay you £1,224 (£3,060 @40%) .

The allowable mileage rate drops to 25p per mile above 10,000 business miles.

And the miles MUST NOT include any element that would be part of your normal work commute.

[Super Slo Mo]

The 11 pence is the standard fuel scale charge for a Diesel engined car of between 1.6 and 2.0 capacity, off the top of my head. That’s from hmrc’s guidelines.

They will pay that as the car allowance they also give you is intended to cover your other running and purchase costs.

[Wolfer]

Thanks Eric,
So I think what I have said is correct? Whether it be gained back in tax relief, change of tax code or something? not sure.

Super Slo Mo - Yeah, I get that, and never worried about ot before, but other people doing a lot less mileage have told me about this.

And regarding the car allowance, It doesnt really cover wear and tear (at least not for me ha ha) as in the last 12 months, I have had 8 new tyres, a new exhaust, new brakepads and discs, 3 services, 1 battery, several bulbs, engine mounts, various bushes, suspension, wheel bearing done, off the top of my head.
Admittedly, one of the main places I get sent, is 25 miles Motorway, 35 miles back roads , and they are 50 or 60 mph roads absolutely rammed with potholes.
They only give me what either google or AA maps says, so if they put in the postcodes, it comes up with shortest distance, thats what I get. In reality, I know I would be stuck for ages in certain areas , so go around, usually adding around 15-25 miles per day easy.
If I fill a tank on my car (circa £80) and use it only for work, the claim I put in covers approx £50 of that at 11ppm.

Thanks