Tax on fuel card

horace972897

Hi

I currently have a car i pay for myself and complete a very small amount of business miles.
I get a car allowance which is taxed as income.
I get a fuel card which is for all of my fuel (personal and business).
Currently i get taxed on it the following way:
It goes as a benefit on my P11D and i fill in a self assessment.
The value of the benefit = total cost of the fuel so i get taxed at my tax rate on the value of fuel purchased however any business miles is deducted from this so the value is just the personal fuel cost. Calculation is to work out the % of the miles in that year that are personal and apply that percentage to the fuel figure.

My question is can i claim any tax back for the business use of the car (i think its called mileage allowance?)

Thanks in advance.

Jon

fengirl_2

Yes, you can claim the business use of the car. It's 40p per mile for the first 10,000 miles and 25p thereafter, but less the petrol costs paid and not taxed.

horace972897

Thanks for the answer - i'm guessing for the small amount of business miles i will be doing (very max 1000 per year) it's debateable if its worth the hassle of keeping the mileage records

I have worked it out as follows:

My car averages 23 MPG (i know i should get a greener car....) so at 89.9p per litre
=£4.08 Per Gallon (£0.899 * 4.54)
=17.7p per mile cost of fuel (£4.08/23)
So i get tax back on 40-17.7p= 22.3p
Tax back =
22.3 * 40% = 8.92p per mile - £89.2 Tax back on 1000 Business miles


Does the calculation sound correct?