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Mileage Allowance Relief Query
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Financial_Savvy
Posts: 385 Forumite
in Cutting tax
I have a company car which I get 11P per mile for business use.
Can I claim MAR on this? i.e. the tax on the difference to 40P?
Can I claim MAR on this? i.e. the tax on the difference to 40P?
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Comments
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The 40p per mile is designed to cover not only your fuel costs but servicing, repairs, insurance, road tax, depreciation and anything else you can think of on your own car.
The 11p per mile you receive is to cover the cost of the fuel you use on business trips (presumably your employer covers all other motor expenses associated with the car). This is the correct rate provided you have a diesel car with an engine capacity of 2000cc or less. If this is not the case you may be entitled to a small amount of relief or may have a small tax liability.
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Financial_Savvy wrote: »I have a company car which I get 11P per mile for business use.
Can I claim MAR on this? i.e. the tax on the difference to 40P?
As NABC said, you are confusing relief for use of own car for business and use of company car.
So I am affraid not. However, the recommended rates are revised/changed twice a year because of the changes in fuel prices.
Check it out:
http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm
Only if what your employers gives you differs from this, you are entitled/owing some tax relief.0 -
You can't use the AMAP rates because it's a company car.
If you look at the guidance on HMRCs pages you can claim relief on the actual petrol costs against what your employer pays. It also says you can't use the advisory rates as above. I guess this is because they don't want to make it too easy for you to claim.
Has anyone got any experience of actually claiming this?
Is there a way to claim without actually recording every petrol purchase you make?
Could you use average petrol prices/mpg figures to support your claim?0 -
Our guys record every single purchase, every single mile and then calculate pence per mile - just to make sure they get the right amount back.
If you claim little business mileage it is much easier just to record your business trips and claim the rates as per my link above. Then you don't have to record every purchase. You should enclose some receipts with your claim, but you don't have to as long as you are claiming less then £25 a month.
That is what I've been told by all mighty HMRC themselves:-)0 -
OK, I have two queries now.
In July & Aug 2004 I did 267 miles but only got 0.23 pence per mile for these. Can I claim relief on the tax for this? Also what is the calculation?
On my company car I am currently getting 10 pence per mile. According to the below link (diesel, 2.2 engine) should I be getting 13.5 pence?
http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm
Thanks0 -
Financial_Savvy wrote: »OK, I have two queries now.
In July & Aug 2004 I did 267 miles but only got 0.23 pence per mile for these. Can I claim relief on the tax for this? Also what is the calculation?
On my company car I am currently getting 10 pence per mile. According to the below link (diesel, 2.2 engine) should I be getting 13.5 pence?
http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm
Thanks
Right,
you need to go back to that link and look at what the rates were (the is a link to old rates on the bottom) at 2004. Then you take the payslips (I suppose it was repaid through payslip?) and send it to them together with form P87.
The calculation is:
the advisable rate - what you got repaid by employer = amount on which you are claiming tax relief.
HMRC advises to get 13.5p but your employer doesn't have to give it to you. That is when you are claiming tax relief on the difference. To make up for it.
Also remember that these rates changs every 6 months so how much can you claim depends on the month in which you did the mileage...
Just because now it is 13.5p doesn't mean you can claim this level if the mileage was done in January.0 -
I assume that when you say you got 23p per mile this was in your own car and you got a company car later. If so yes because you can go back 6 years. As this is 03/04 you need to complete your claim for this by 31 January 2010.
There is a calculator for this on the link.
http://www.expensestaxrebate.co.uk/calculator/
It's probably only about £10 though.0 -
Yes the 23 pence was in my own vehicle. It was between company cars.
So do I fill out a P87 and send with payslips?0 -
Yes, you just need your year end payslip or your P60. Best not send both in case they get lost in the post.
You should get a littel bit of interest on this too as it is 6 years old.0 -
Are there any circumstances that I can claim back more than 6 years?0
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