Tax relief on business mileage

TykeUK

Yes you can - I just did it and was completely up front about having a fuel card.

stevo84_2

okies.

On this note, is there a current P87 for tax yr 05-06 as I can not find one for download, or do I just use an 04-05 and note it to 05-06..??

I had to do this once for 01-02 as they did not have any dated that old!

Steve

bootman

TykeUK wrote:

Yes you can - I just did it and was completely up front about having a fuel card.

If you have a fuel card the surely you are not paying anything yourself that needs to be claimed back via tax? you company is paying for the fuel not you.

Am I missing something here!

stevo84_2

bootman wrote:

If you have a fuel card the surely you are not paying anything yourself that needs to be claimed back via tax? you company is paying for the fuel not you.

Am I missing something here!

he is still paying for maintenance, insurance, tax, wear and tear, tyres... this is all included in the 40p per mile, just i thought fuel was included too, as I only get 30p per mile but have to pay for my fuel too :0(

TykeUK

stevo84 wrote:

he is still paying for maintenance, insurance, tax, wear and tear, tyres... this is all included in the 40p per mile, just i thought fuel was included too, as I only get 30p per mile but have to pay for my fuel too :0(

You can claim tax relief on the difference between what your employer pays you per mile and 40p per mile (for the first 10,000 miles at least). I get nothing per mile as I have a fuel card so I can claim tax relief on the whole 40p - HMRC agrees. Before they agreed they claim they made additional enquiries about my circumstances - see earlier in this thread.

johnllew

TykeUK wrote:

I get nothing per mile as I have a fuel card.

Does this mean your company pay the fuel costs for you? If so, you can not claim the full 40p per mile; you should deduct the cost of fuel met by your employer (unless for some reason, you're taxed on the fuel card amounts?)

stevo84_2

johnllew wrote:

Does this mean your company pay the fuel costs for you? If so, you can not claim the full 40p per mile; you should deduct the cost of fuel met by your employer (unless for some reason, you're taxed on the fuel card amounts?)

thats what i thought but uif the IR have agreed then thats that !!

johnllew

stevo84 wrote:

thats what i thought but uif the IR have agreed then thats that !!

I think they have probably misunderstood. I wouldn't take it for granted that a mistake has not been made and I would be putting the difference aside just in case.

wonka

johnllew,

Please can I reassure everyone that we have not misunderstood our entitlements to claim 40p per mile. I must admit that I was surprised too when I heard this suggestion a few years ago, but it makes sense when you understand the context. Bear in mind that we pay tax on the fuel card purchases, EVEN for business mileage. So that offsets our claim for FULL 40p relief.

Myself and my colleagues have clarified this over and over with various tax inspectors, and it is now confirmed in various Tax leaflets. In fact, please read this manual before contradicting further.

You may also want to read a similar post I made on the same subject a few weeks ago:
http://forums.moneysavingexpert.com/showpost.html?p=1896544&postcount=17 (from this thread)

Let me re-iterate: This is not a mistake!

Sorry for getting on my soapbox, and forgive me if I cause offence, but I just want to make sure that disinformation doesn't get perpetuated.

stevo84_2

thats a good point if you have paid tax on the fuel card (as its classed as a perk, like a mobile phone or a company car) then you should be allowed to claim the full 40p then. well in my eyes.