Private Mileage Help

andylong42

For the past 5 1/2 years, I have had a company car with a fuel card. I pay private mileage tax and have not paid for any private mileage in this time.

The employer is now saying that I can have 6000 private miles a year and must pay anything above this at the standard rate of 13p/mile. I am continuing to pay tax for the private mileage benefit.

Is this correct? Surely if I am paying the tax then I should not have to pay for private mileage? I have a poor understanding of tax issues, but feel unhappy about the situation. Surely you cant have a mix of both?

tinkerbell84

andylong42 wrote: »

For the past 5 1/2 years, I have had a company car with a fuel card. I pay private mileage tax and have not paid for any private mileage in this time.

The employer is now saying that I can have 6000 private miles a year and must pay anything above this at the standard rate of 13p/mile. I am continuing to pay tax for the private mileage benefit.

Is this correct? Surely if I am paying the tax then I should not have to pay for private mileage? I have a poor understanding of tax issues, but feel unhappy about the situation. Surely you cant have a mix of both?

put it this way, I pay for my own mileage out of my taxed income. so i pay for the tax and the mileage.

why shouldn't you?

Bean_Counter

You really need to look at it as two seperate matters. Firstly there is the tax side of things. This hasn't really changed and you are still continuing to be charged extra tax for the benefit of receiving free fuel from your employer.

Secondly, the employer is looking to restrict your private mileage to what they think is an reasonable level. Hence they are charging you the 13p per mile for anything over the 6,000 miles. This is nothing to do with tax - purely your employer looking to control their costs. Out of interest, we do a similar thing with our company vans.

trevormax

Unfortunately HMRC will include the same deduction on your tax code regardless of how much petrol your employer provides. If you have a company car and a fuel card but only do 1 mile in the year, you will have the same deduction on your tax code as someone doing 10,000 miles.

If you are offered a fuel card, you need to work out if you are better off using it, or if you are better off paying for all of your fuel personally.