Petrol

scuzz · 16 August 2005 at 5:53PM

OK I'm not self employed, but I've heard you can claim petrol allowances back from the tax man.

I get paid 30p a mile in expenses at work, and been told by a friend that I can get another 15p per mile back from the taxman.

Is this true? If so, how do I go about claiming it? cos I do loads of miles for work

WHA · 16 August 2005 at 5:58PM

No, you don't get the 15p "back from the tax man".

The Inland Revenue "allowed" rates are 40p per mile for the first 10,000 miles p.a. and then 25p per mile thereafter. If you exceed 10,000 miles, then the extra 5p you received is actually taxable.

Assuming you do less than 10,000 miles p.a. you can claim the extra 10p's against your taxable income, so that you'll get 22% or 40% of 10p per mile back from the tax man. To do this you need to contact them, and may need to complete a self assessment tax return.

santana-mx3 · 16 August 2005 at 6:16PM

There is also another 5p per passenger per mile which you can claim if applicable (in addition to the 40p/25p per mile) which is also tax free. If this is applicable and you are not claiming this from your employer, the same should apply as to the difference between the 40p allowable and the 30p claimed (see WHA's post).

Have a look at this leaflet: "IR124 Using your own vehicle for work" http://www.hmrc.gov.uk/pdfs/ir124.pdf

The rates are not very good considering how much car running costs are these days. The old rates were much higher but the lovely IR reduced them from 6/4/02.

ManAtHome · 16 August 2005 at 6:30PM

Also, you can't claim at all for journeys between home and your normal place of work - if your employers actually pay you for this mileage you are liable for tax. For example, if you start at the office then travel round only the 'travelling round' mileage can be paid not the home to office bit (hope that makes sense).

Aark · 16 August 2005 at 6:32PM

You cannot claim tax relief on the 5p/mile for each passenger, but your employer can pay you up to that limit tax and NIC free.

From http://www.hmrc.gov.uk/pdfs/ir124.pdf,

What about payments made for passengers?

If your employer pays you an allowance for business passengers the maximum amount you can get without paying tax and NICs is 5p per mile per passenger.

You will be liable to pay tax and NICs on any amount over that.

For payment to be free of tax and NICs the passenger must also be an employee on business travel.

If your employer pays less than 5p per mile per passenger or does not pay you an allowance for passengers you cannot claim tax relief on the difference.

The rates are not very good considering how much car running costs are these days. The old rates were much higher but the lovely IR reduced them from 6/4/02.

I think the Inland Revenue reduced the rates for larger engined cars and increased the rates for smaller cars - the result being that now there is a standard rate for all cars.

You can even claim 20p/mile tax and NIC free for business cycling!

Altarf · 16 August 2005 at 9:38PM

santana-mx3 wrote:

Have a look at this leaflet: "IR124 Using your own vehicle for work" http://www.hmrc.gov.uk/pdfs/ir124.pdf

IR124 is a good introduction but is a bit simplistic and leads you to believe that their are some journeys that you cannot claim for, which in fact you can. If you start your business trips from home rather than the office, the employers notice Booklet 490 is essential reading as it covers this in much more detail.
http://www.hmrc.gov.uk/helpsheets/490.pdf

billcam007 · 5 June 2009 at 7:29PM

Hi i have just gone as a self employed gardener i have been told by so many mates that i can clame for all my 100 per cent on petrol i have a car at mo but going to get van

billcam007 · 5 June 2009 at 7:38PM

Hi i have just gone self employd as a gardener i have a car at mo but geting a van,some of my mates have told me that i can clame 100 per cent petrol.is this true

fengirl_2 · 5 June 2009 at 9:09PM

If you use the van 100% for business, then you need to include all the running costs of the van in your accounts - that includes paterol, MOT, insurance, repairs, etc. You dont claim anything, but the inclusion of these expenses in your accounts will reduce your tax bill. You will also claim capital allowances on the van on yur self assessment.

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