What tax implications for using leased vehicle for work?

lynzpower

Ok.

I work full time as a employee of a private company and earn 25k.

I currently use a fleet work vehicle daily for my job. I drive around the country. Currently I pay for the petrol which is directly reimbursed to my via bacs or cash. I also pay for parking tickets/ cleaning. which is reimbursed. Congestion charge is paid annually by employer.

I am now in a position where I want to buy my own van and use this in the wrok setting. As well as personal use ( camping /supermarket etc).My line maanger suggested that I could use my own van for work would be good and should claim full mileage. . I was thinking about getting LPG one to avoid CC, and then the mileage be paid to me which is 40p per mile. parking charges to be paid by them still. I pay the tax & insurance as of course I would as my own vehicle.

However, now Ive had a bit of a think and am wondering about leasing instead of buying. Im having a look at a few sites now. to get a feel for prices.

Could anyone tell me what , if any tax implications I would have on this. Is there any way I can claim any of these items as a business expense? Or do i need to be self employed for that?

Sorry I know these questions are probably confusing but I really know very little about tax so I hope someone can help

Thanks x

fengirl_2

It does not matter how you have obtained the vehicle, the only tax relief you can claim as an employee is 40p pm for the first 10,000 business miles and 25p pm thereafter. This is designed to cover all the running costs of the vehicle. As your employer will be reimbursing these business miles, then no further tax relief is due.

lynzpower

Perfect Fengirl, exactly what I needed to know :T thanks!! x