Advisory fuel rates lowered again. Time to reclaim!

[paultownsend]

I just want to get my head round this.

I get a car allowance which is paid through my PAYE. I pay the lower band tax rate.

I finance a three year old Volvo V40 D4. The allowance pays for the loan and all running costs, service plan, insurance etc. There’s a Reasonable monthly surplus which I save for tyres and consumables.
I run a separate bank account for the car. It pays for everything excluding all diesel.

Previously I have claimed back 11ppm which when filing up from Costco, worked out as breaking even. Now the rate has been reduced to 9ppm it’s costing me to drive company miles.

So as I understand it. I can claim back tax relief on the 36p, which is the difference between 45p and 9p. So 7p?

Sounds trivial and I wouldn’t have bothered before. But I’m not loosing on it.

Also, is it now too late to claim for last tax years mileage?

[mfmman]

Other than after 10,000 miles per tax year it drops to 25ppm as the AMAP rate then you are correct about the amount you can claim, and you can go back up to four years

[alistair1234]

paultownsend said:

I just want to get my head round this.

I get a car allowance which is paid through my PAYE. I pay the lower band tax rate.

I finance a three year old Volvo V40 D4. The allowance pays for the loan and all running costs, service plan, insurance etc. There’s a Reasonable monthly surplus which I save for tyres and consumables.
I run a separate bank account for the car. It pays for everything excluding all diesel.

Previously I have claimed back 11ppm which when filing up from Costco, worked out as breaking even. Now the rate has been reduced to 9ppm it’s costing me to drive company miles.

So as I understand it. I can claim back tax relief on the 36p, which is the difference between 45p and 9p. So 7p?

Sounds trivial and I wouldn’t have bothered before. But I’m not loosing on it.

Also, is it now too late to claim for last tax years mileage?

i thought you could claim back 5 years worth. They will just adjust your tax code going forward so it auto gives you the relief based on your average mileage so you don't need to make contact again.

Also, might be worth adding the working from home tax relief as well if you've been doing that for a while, or if you've been doing it since covid.

[PorkInsider]

paultownsend said:

So as I understand it. I can claim back tax relief on the 36p, which is the difference between 45p and 9p. So 7p?

Sounds trivial and I wouldn’t have bothered before. But I’m not loosing on it.

Also, is it now too late to claim for last tax years mileage?

It's not trivial at all.

If you're doing 10k work miles that's 20% of £3600 per year you're giving away if you don't claim it.

[paultownsend]

I have found my HMRC gateway code so will take a look this weekend.