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  • FIRST POST
    • sillysladey
    • By sillysladey 17th May 17, 10:38 AM
    • 43Posts
    • 14Thanks
    sillysladey
    Car Scheme tax question
    • #1
    • 17th May 17, 10:38 AM
    Car Scheme tax question 17th May 17 at 10:38 AM
    Hello All,
    I have a brand new car under a work benefit scheme (Justdrive) but I also receive a car allowance (£5.2k pa). My work pay me 11p per business mile and in the past year I think I have done around 8k.
    Someone at work has said that I can reclaim the tax relief on the difference between what the government guidelines are (45p) vs what I receive (15p). Can I just confirm is that correct? I didn't think I would be entitled to anything, but as a 40% tax payer this could be a good chunk of money? Circa £1088. (8000*(0.45-0.11) *40% = £1088.


    Many Thanks,
Page 1
    • sheramber
    • By sheramber 17th May 17, 2:38 PM
    • 3,868 Posts
    • 2,874 Thanks
    sheramber
    • #2
    • 17th May 17, 2:38 PM
    • #2
    • 17th May 17, 2:38 PM
    Does the Just Drive scheme cover servicing, insurance, breakdown cover etc.?
    • sillysladey
    • By sillysladey 19th May 17, 8:18 AM
    • 43 Posts
    • 14 Thanks
    sillysladey
    • #3
    • 19th May 17, 8:18 AM
    • #3
    • 19th May 17, 8:18 AM
    sorry yes, thank you.
    • sillysladey
    • By sillysladey 19th May 17, 8:19 AM
    • 43 Posts
    • 14 Thanks
    sillysladey
    • #4
    • 19th May 17, 8:19 AM
    • #4
    • 19th May 17, 8:19 AM
    yes it does include all aspects; insurance, breakdown cover, servicing.


    Many Thanks
    • dori2o
    • By dori2o 19th May 17, 8:31 AM
    • 7,338 Posts
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    dori2o
    • #5
    • 19th May 17, 8:31 AM
    • #5
    • 19th May 17, 8:31 AM
    So its a lease scheme?

    If so, is the price you pay given at a preferential rate because of an agreement with your employer? Is the same deal available to the general public?
    To equate judgement and wisdom with occupation is at best . . . insulting.
    • Credit-Crunched
    • By Credit-Crunched 19th May 17, 8:51 AM
    • 2,081 Posts
    • 4,094 Thanks
    Credit-Crunched
    • #6
    • 19th May 17, 8:51 AM
    • #6
    • 19th May 17, 8:51 AM
    So its a lease scheme?

    If so, is the price you pay given at a preferential rate because of an agreement with your employer? Is the same deal available to the general public?
    Originally posted by dori2o
    This is the key question, if you are receiving any benefit as a result of your employer engaging in preferential terms, then it will be a benefit in kind. If I could walk into the garage and obtain the same deal, then no BIK.
    • sheramber
    • By sheramber 19th May 17, 5:07 PM
    • 3,868 Posts
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    sheramber
    • #7
    • 19th May 17, 5:07 PM
    • #7
    • 19th May 17, 5:07 PM
    http://www.inchcapefleetsolutions.co.uk/products/justdrive
    • dori2o
    • By dori2o 22nd May 17, 11:53 PM
    • 7,338 Posts
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    dori2o
    • #8
    • 22nd May 17, 11:53 PM
    • #8
    • 22nd May 17, 11:53 PM
    OP. That suggests to me that a benefit in kind will apply as the deal seems to be preferential based on your employer signing up to it and it not being available to the general public, therefore its considered a company car and the 45p/25p mileage rates wouldnt apply and you could only claim upto the HMRC advisory rates, and as your employer seems to be paying 11p per mile your likely getting all the relief due.

    See the advisory rates here https://www.gov.uk/government/publications/advisory-fuel-rates

    The reason for this is that a) the 45p/25p rates only apply to the use of your own vehicle for business travel, and b) they account for things like servicing, wear and tear, tyres etc etc. Under this lease scheme you suffer none of that cost.

    See this for more information
    https://www.employeebenefits.co.uk/issues/march-2014/all-employers-need-to-know-about-car-salary-sacrifice-schemes/
    Last edited by dori2o; 22-05-2017 at 11:59 PM.
    To equate judgement and wisdom with occupation is at best . . . insulting.
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