unsure of mileage tax

illusion28

Hi,

I'm hoping someone can help point me in the right direction as I'm a little stuck with claiming back tax on my mileage. Here's my general situation:

I have a company fuel card
I pay £50 per month to the company for use of this card
I can use fuel for personal and business miles on this card
I am using my own car for all of these miles, I have no company car

My yearly fuel bill is shown on my P11D, and I pay tax on my fuel through my tax code being reduced.

Because I'm crap with tax I've never declared any business miles and I've had this fuel card for around 5 years. My question is do you think I'm entitled to claim any tax back on the business miles I've done, and if so how much per mile? Also, do you think I'd be able to claim for previous years since I've had the card?

Help would be greatly appreciated. Thanks

Bluenote_2

If anyone has an answer to this I would be greatful I have tried our payroll dept and HRMC and am getting the runaround

nakmeister

So you pay £50 per month for the privilege of having a company fuel card, which essentially gets you as much free private and business fuel as you want, is this correct?

Since you are using your own car, you are entitled to receive from your company (or claim from Revenue the difference if you receive less) 40p per mile for the first 10,000 miles in a tax year and 25p per mile thereafter. What the folks that do your P11D should be putting on there is the following:

Total fuel bill for the year minus £600 (12 x £50) minus mileage allowed.

So for example:

Scenario One

You spend £250 per month on fuel = £3,000 per annum
You spend £50 per month for the fuel card = £600
You do 3,000 business miles = 3,000 x 40p = £1,200

Here you should have a taxable benefit of £3,000 - £600 - £1,200 = £1,200

Scenario Two

You spend £250 per month on fuel = £3,000 per annum
You pay £50 per month for the fuel card = £600
You do 12,000 business miles in the year = 10,000 x 40p + 2,000 x 25p = £4,500

In this scenario there's no benefit - you've received effectively £2,400 of fuel from the company but were entitled to claim £4,500. You can even claim the difference - £2,100 - as an extra allowance in your code and get your tax bill reduced.

You should be able to go back and claim upto the last 6 years worth of tax back - but you may need to get your company to write to the Revenue amending your forms P11D before the Revenue will change your tax.

Oh and worth pointing out perhaps, ordinary commuting, i.e. driving from home to your usual place of work, is not treated as business miles.

Hope this helps. Good luck getting your tax back!

Bluenote_2

Hi , thanks for getting back over this one ,or payroll are good as a rule but don'thave a clue on this one, regards,Bluenote

Curve

Hi,

I get 12p a mile for using car and did about 18k miles last year, does not mean I can claim the difference?

I've just had a look on the HM Revenue website and can't find any forms. If I right could someone please point me in the right direction? I suppose I'd have to do it online now to prevent a penalty charge!

Cheers

illusion28

Hi,

Thanks for the help with this. After 8 weeks, 2 letters and a couple of phone calls I've now received my cheque for £700. It was pretty easy, and I'm a bit surprised they never asked for any documented mileage etc, as I've never declared my business miles to anybody.

Cheers