Employer won't allow me to claim fuel back from HMRC

Muttonchops_1943
Muttonchops_1943 Posts: 64
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edited 18 April 2015 at 9:56AM in Cutting tax
Hi,

Will try to stick to the facts:

1. I use my own car for work purposes. I do just under 10,000 business miles per year
2. I receive a monthly car allowance (which is a separate payment to the pence per mile I receive and is shown separately on my payslip)
3. I receive 12p per mile
4. I get an additional 2p allowance on top of the pence per mile to cover wear, tear, MOT etc.

Clearly, I receive less than the allowance of 45p per mile as the current HMRC rates allow,

Here is my dilemma.

My company will not let me claim the difference back between the 12p and 45p saying that they already claim this on my behalf?

Can they do legally stop me from doing this? They've written into our company car allowance document that on no circumstance do we contact HMRC to claim the difference.

I don't think this is fair. Surely my tax affairs are my own to determine and not for my company to claim on my behalf. Especially as they don't pay us the full allowance. I understand they are able to pay us whatever they want in terms of pence per mile but stopping us from claiming the difference back is another matter surely.

Can anybody advise?
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Comments

  • quietriot
    quietriot Posts: 179 Forumite
    They may be notifying HMRC under the MARORS scheme - check with your payroll department.

    But if they're not doing that then I'd go ahead and claim anyway - the employer's got no way of knowing what the employees are claiming, especially if it's done under self-assessment (which on the figures you've given us, you would be).
  • Ok, so if my employer is using the MARORS scheme, what is the implication for me? Does it mean they are making a claim on my behalf for the tax but not paying me the full amount? I really feel I'm being ripped off. Even worse, my employer publishes the fuel rates but uses company car rates and we don't even have a company car scheme!
  • quietriot
    quietriot Posts: 179 Forumite
    MARORS is when they pay you less than the 45p per mile, but they tell HMRC your mileage and HMRC calculate your relief automatically. It's very rare to see it used these days.
  • prowla
    prowla Posts: 13,126
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    My guess is that they are claiming the full whack and giving you back part.
    Either that or they don't know the difference between a company and a private car!
  • comeandgo
    comeandgo Posts: 5,731
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    What was your tax code for last year?
  • bukko
    bukko Posts: 138 Forumite
    It would ring bells with me that they say you cannot claim the difference, but don't say why.
    I would contact HMRC and check that what they are doing is legal - which your agreement does not seem to stop you from doing.
    If it is not legal, no such agreement would be valid.
  • CLAPTON
    CLAPTON Posts: 41,865
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    fletchie wrote: »
    Ok, so if my employer is using the MARORS scheme, what is the implication for me? Does it mean they are making a claim on my behalf for the tax but not paying me the full amount? I really feel I'm being ripped off. Even worse, my employer publishes the fuel rates but uses company car rates and we don't even have a company car scheme!

    maybe you might want to compare the 'car allowance' with your perceived loss of tax relief on the mileage


    do post up the two amounts
  • The MARORS scheme seems the most likely scenario as a colleague of mine also queried it and was told the 'company already declares it' so we don't need to. Obviously there was no naming or mention of MARORS but reading up on it, seems to fit why we can't claim ourselves. Is there any legal obligation for the employer to pass on the difference to us?
    My gripe is being told I can't claim the difference back from HMRC but not being told why we don't receive the difference if the company are receiving
    it.
  • CLAPTON
    CLAPTON Posts: 41,865
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    fletchie wrote: »
    The MARORS scheme seems the most likely scenario as a colleague of mine also queried it and was told the 'company already declares it' so we don't need to. Obviously there was no naming or mention of MARORS but reading up on it, seems to fit why we can't claim ourselves. Is there any legal obligation for the employer to pass on the difference to us?
    My gripe is being told I can't claim the difference back from HMRC but not being told why we don't receive the difference if the company are receiving
    it.

    the tax payer DOESNOT repay the difference to anyone: they do allow tax relief on the difference i.e. 20% of the amount (or 40% or 45% depending upon tax rate)

    how much is your car allowance ?
  • CLAPTON wrote: »
    the tax payer DOESNOT repay the difference to anyone: they do allow tax relief on the difference i.e. 20% of the amount (or 40% or 45% depending upon tax rate)

    how much is your car allowance ?

    Sorry if I'm being completely thick here, but I don't understand what you mean. My understanding is that if I've been paid a pence per mile which is lower than the HMRC rates then I can submit a claim on form P87 to get the unused balance/the difference of the approved amount. Is this not correct? Perhaps it's my terminology that has caused confusion.

    Hope you don't think I'm being rude but I'd rather not publish my car allowance or tax code online (worried of repercussions if my employer saw this) but I'm a lower rate taxpayer.
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