Private Car Usage and Fuel Cards

Ladsbroke

Hi don't know if anyone here can help but here goes.

I have recently changed jobs, in my old job I received a car allowance per month and was paid 35ppm for business mileage, and 20ppm after 10k miles.

I was able to claim back the tax on the difference per mile 5p at the end of each tax year. Presumably this figure per mile is meant to cover fuel wear and tear depreciation etc.

In my new job I still use my own private car but have been given a fuel card which I am taxed on. I still note all business mileage as I understand I may be able to reduce my tax bill as I shouldn't get taxed on business mileage.

Recently a friend advised me that I may be able to claim money back in a similar way to which I did when I was on a mileage allowance now I am on a card. This seems feasible to me as presumably the fuel card is only covering fuel for my car and not wear and tear and depreciation etc.

Please if anyone out there knows about this I'd reallly appreciate some advice.

Thanks

James

withabix

It's exactly the same procedure as it was for your previous job - I'm in this position as well.

You should not be taxed for specifically having the fuel card however - ie it has no taxable value just for existing, unlike the situation with a company car. If you are paying tax (ie reduced tax code) for having the fuel card.

The total amount of fuel you have purchased with the fuel card in the tax year will appear as a benefit on your P11D form.

When you do your tax return, multiply the first 10,000 business miles by 40p and the remainder by 25p and enter the total of both as your expenses in the appropriate box.

I'm assuming you changed jobs in the last tax year - if so, you claim both mileage allowances independantly of each other - ie you are entitled to claim relief at the 40p level for the first 10,000 miles for EACH employment.

Beware of non-legitimate business mileage however - the IR are quite sharp when it comes to this - I get investigated every other year because I claim all my work mileage as business - one day they might get the message that I don't have a fixed place of work as I'm a site manager in the construction industry.

If you've got a fixed place of work, those miles from your home to your office are NOT business miles.