Fuel card tax relief

slinkykev

Hi all, I would be most grateful if someone can clarify if I have any grounds to reclaim any tax from my fuel card usage;

My employer provides me with an annual car allowance to use my own car which goes on my salary slip and is taxed in the usual manor.

I am also provided with a fuel card for both business and personnel milage. When I started the company I was lead to believe I could reclaim a certain portion of tax, and so I have been keeping records of both my business and personal milage.

My P11D states I earnt £3308 for my fuel over the course of the year, which presumably I will be taxed on. How do I go about reclaiming any due tax back for business / personal milage?

In my previous company I was paid ppm so it was easy to use the P87 form, but I don't see how I can apply the P87 form to my new circumstance.

Many thanks in advance.

TM1976

Claim the same way but the reimbursement should be nil, ie claim for the full 40p a mile.

It sounds wrong but when you think about it it's correct as your employer pays for your fuel but you already pay tax on that so you only need to pay the tax once.

slinkykev

ok I think I understand, so when I complete my SA I have to pay tax on the amout received from fuel as this is an employee benefit. My question was leading on to something else;

Completing my SA tax return for the first time, the end calculation says I owe the HMR&C £485, which when playing around with the numbers appears to be directly related to the £3308 I received from my employer for my fuel i.e. employee benefits.

Presumably, the first year that I worked with this employer, the HMR&C was not aware that I would receive £3308 employee benefit so they didn't tax me on this through my tax code. Now that I am completing a SA for that same year, the HMR&C has just realised I earnt an employee benefit and so I owe the HMR&C some money.

Can I assume that now the HMR&C are aware that I receive an employee benefit in the region of £3000, this amount will be included when I next receive a tax code notice and I won't end up having to pay a lump sum at the end of the year?

tarajayne

I didn't know you could get tax relief on a fuel card, I assume that this is because it's your own car. I was wondering how it works with a company car as you pay tax on total fuel including business miles, how can that be when driving round for your job is not a benefit. Can you claim anything at all?

TM1976

HMR&C should be aware of your fuel benefit as they will have received a P11D, however you also need to include this benefit on your SA return to come out at the right figure. There is usually a difference because of the timing of P11Ds that are done in July. They should collect extra tax for this though your tax code but your tax return is where you close out the tax year and get to your final position.

On top of this you should claim tax relief for your business mileage at 40p a mile because you use your own car.

TM1976

tarajayne you can claim this. It's discussed on this thread:
http://forums.moneysavingexpert.com/showthread.html?t=1846345&highlight=company+car+fuel+p87