Company car tax relief question

[325Ti]

hi all - hopefully in the right section here

just ordered new company car - my first hybrid

all previous cars have come with a fuel card and work has paid the fuel

new car i have to pay my petrol and electric bill myself, and then claim the business miles back at 12p per mile

i have been told to check for additional tax relief - HMRC website wasnt the clearest - stating i could claim the difference between cost and what company pays - but surely very hard to prove - cost of electric, number of miles driven on electric vs petrol etc etc

any knowledge out there?

[Muzzer79]

I'm not an accountant, but I believe that you only claim tax relief when you're using a private car - i.e have opted out.

You car seems to be company-supplied, so you can't claim the difference between your 12p and the 45p government rate.

By removing your fuel card, your company have also removed the 'perk' of your private mileage being paid for.

You may benefit in that respect by not being taxed on said fuel card. But if you have a long commute or do loads of private miles, this will hurt you to some extent as you may now pay more in private fuel than you were taxed on the fuel card.

[Countdown]

325Ti said:

hi all - hopefully in the right section here

just ordered new company car - my first hybrid

all previous cars have come with a fuel card and work has paid the fuel

new car i have to pay my petrol and electric bill myself, and then claim the business miles back at 12p per mile

i have been told to check for additional tax relief - HMRC website wasnt the clearest - stating i could claim the difference between cost and what company pays - but surely very hard to prove - cost of electric, number of miles driven on electric vs petrol etc etc

any knowledge out there?

There’s no additional cost to you. The company is paying for both your car and your mileage so you’re not incurring any tax on those so there’s nothing for you to reclaim. The 12ppm reimbursement sounds like the correct rate for miles only.

[xx99xx]

You can make additional savings (on top of your lowered BIK) by maximising your MPG, charging as often as possible and as cheaply as possible (if it's a PHEV) when driving on business.

At current petrol prices, anything over 40mpg and you're in profit for business miles. (£1.08/litre @ 12p/mile reimbursement). Although if a PHEV you need to factor in cost of electric which will push your MPG break even a bit higher.

[Macroni18]

325Ti said:

hi all - hopefully in the right section here

just ordered new company car - my first hybrid

all previous cars have come with a fuel card and work has paid the fuel

new car i have to pay my petrol and electric bill myself, and then claim the business miles back at 12p per mile

i have been told to check for additional tax relief - HMRC website wasnt the clearest - stating i could claim the difference between cost and what company pays - but surely very hard to prove - cost of electric, number of miles driven on electric vs petrol etc etc

any knowledge out there?

Is it a salary sacrifice scheme or is the company footing the bill for the car?