Company Car / Car Allowance Questions
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Christ 10p barely covers the fuel costs.
Op : you need to check what mileage rate you can claim as with your mileage you should be quids in (you should be able to claim £11,000) towards running costs on 40,000 miles.
It's only meant to cover fuel cost. Check HMRC rates, casual user rates are far higher than company car drivers.
https://www.gov.uk/government/publications/advisory-fuel-rates/how-advisory-fuel-rates-are-calculatedRemember the saying: if it looks too good to be true it almost certainly is.0 -
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I suspect that Jim meant the same thing but didn't express it as such.
You claim business miles off the company at the agreed fuel rate (I think it's 11p per mile for us), and then you can claim tax relief on the difference between HMRC rate and what the company has already given you.
So for the OP it would be marginal tax rate (e.g. 20%) of 45-10=35p for the first 10k miles, then 25-10=15p for the next 30k miles.
Company pay: 40k x 10p = £4,000
Tax relief 1: 10k x (35p x 20%) = £700
Tax relief 2: 30k x (15p x 20%) = £900
Overall = £5,600 ... £4,000 up front (i.e. as claimed on expenses) and £1,600 in tax relief.0 -
Sorry but I'm about to jump in here and hijack this thread but at least it's a related question
Company car vs car allowance – HELP !!
I currently drive a three-year-old Citroen C4 Picasso THP 155 company car (petrol) with all expenses paid (private mileage included) and I pay tax at 40%. I’m trying to work out if I would be better off by asking for a company car allowance rather than take the car.
How much does my current vehicle actually cost me in tax, is it 40% of the sum of the car benefit (£4118) and fuel benefit (£5876) currently shown on my latest tax return ?
If I were to opt for a car allowance in place of the vehicle what would be a good figure to start with when negotiating the allowance assuming that the car is replaced every four years ? There has been no negotiation yet regarding the type/style/age or size of the car.
What’s your advice on claiming fuel for business mileage and how do I insure a vehicle that isn’t used just for S,D&P but includes an element of business use ?
Our company has traditionally purchased vehicles outright but there now seems to be a leaning towards leasing. Is there any benefit to me either way or is this purely a financial issue for the company ?
Citroen C4 Picasso THP 155 with all private and business expenses paid (petrol etc.)
List price of car £16,995
C02 Emissions figures 139g/km
Engine capacity 1598cc
2017-2018 tax figures – tax code 169T
Car benefit - £4418
Fuel benefit - £5876
2016 – 2017 P111D Value - £16,995
Cash equivalent of car - £4078
Cash equivalent of fuel - £5328
Estimated business mileage per year – no more than 10k max. (probably a lot less)0
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