Company car & business mileage reclaim question

lippyrich

Hello
I have a question I am hoping someone here can help with, kind of complicated (I think so anyway) but here goes.
I have a company car & a fuel card supplied by my employer but all fuel gets deducted from my salary, I then have to fill out a mileage reclaim form for my business miles which is paid at a ludicrously low rate - circa 10ppm (my employer is a motor trader so my vehicle may change 3 or 4 times a year so the rate fluctuates). I understand that if I was using my own vehicle and the company paid below the government guideline figures that I could claim back some tax. Can I claim anything back as it stands because there is no way that 10ppm is adequate compensation for the ammount it costs me to run the car and asking for a higher rate of recompense would be like committing professional suicide.
Thanks in advance,
Richard.

fengirl_2

The 10p pm is the amount HMRC allow for reimbursment of petrol. Anything more would be taxable.
If you use our on car for work, you can claim 40p pm for the first 10,000 business miles and 25p pm thereafter. If your employer does not pay this, you can get tax relief up to this mimit.
However, I would do your sums carefully - you may find that a car provided by your employer on which you are only paying tax on the value would make you better off than having to buy and maintain your own vehicle.

lippyrich

I have done my calculations based upon the fact that the car over a 4 week period has averaged 25mpg and that my fuel is costing me 99.9p (on a diesel !) per litre - this to my sums adds up to be 17.8ppm that the fuel is costing me, this does not take in to account the fact that my fuel figures are usually worse due to the fact that most of my journeys are in town in a small area thus my economy usually shows 17-15mpg which I calculate to be more like 29ppm !

Bobl

You will find that different companys pay different amounts for reimbursement of fuel. The company I work for pays 40ppm for the first 2500 miles and 18p thereafter. You can then claim the diffference between what you are paid and the inland revenue rate annually.

You need to download a form from the Inland Revenue Site, record your mileage, what the company paid you and then claim the difference.

It is very straight forward.

fengirl_2

Please note - Bobi's answer relates to someone using their own car for work. My reply relates to the OP's position.