Company lease car

charlie22_2

Please help a very new 1st timer. I have a lease car from my company and they tax and insurance it, and I am taxed on all of this, I pay for my own petrol and understand that I cannot claim for mileage from work to office, only from office to clients homes, I complete a mileage form every month for work, claiming ONLY for business mileage my company then pay me 12p per mile which I am again taxed on.
I have read HM site and phoned and spoke to a very helpful man, and explain everything including that it is a company lease car and he said that I can claim 28p per business mileage from them (to each the 40p. I have queried this a couple of times with different people at HM and been told the same each time.
They have sent me P87 forms to complete back dated to 2005 when I got the car.
Is this correct as I don't wish to end up with egg on my face.
Thinking about it, some staff use their own cars and receive approx £1,000 essential car user per year ,purchase their own petrol and claim from the company 37p per business mile depending on c.c. of car.
Please can anyone advise me as have searched but cannot find anything relating to lease company cars
By the way, site is excellent!

fengirl_2

I don't think the info you have been given is correct as the 40p pm allowance is for the use of your own car for work. This allownce is designed to cover all the running costs, not just petrol. You are provided with a car which attracts a tax charge. Your employer reimburses you for work fuel at the agreed rate. I think the error here is that they should not tax this payment.
The fact that the car is leased by your employer is not relevent - you are provided with a car which is taxable.

Any

Why do you think you are taxed on the 12p a mile payment? Does it come on your payslip as expense? Many people make the mistake that they think that "expenses" line on their payslip is taxed when in fact it isn't.

What size engine is the car? That makes difference in what amount per mile you should get. 12p is the HMRC recommended amount for 1401cc-2000cc petrol cars at the moment. This changes twice a year, or sometimes more often if the price of fuel goes suddenly very up or down (like we had last year).

The info about 28p a mile is incorrect. They didn't hear you properly when you told them the car is company car.

Any

http://www.hmrc.gov.uk/cars/fuel_company_cars.htm

http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

No idea what HM website did you read, but this one is the one that you need to be looking at.