Mileage Allowance - Tax Relief?

punto_chris

Hello,

I've recently found out that I should be able to claim some tax relief on the millage allowance I get from my employer. Does anyone know how I go about this and what information I need?

Some information about me:

I have a company car which is a 1.9 Diesel
My employer pays me 11p per mile for every business mile I do
My annual salary is £18000

Is there anything I can claim based on this information? The reason i'm looking into this is because my employer is going to be moving premises in the next few months and due to the move it is going to cost me around £600 extra per year in fuel to travel to work. That is simply something I cannot afford and unfortunately my contract states that they will not cover any additional costs as long as they move less than 30 miles in any direction. Due to the current economic climate it's unlikely that I will get a payrise either so I'm looking at my options before considering finding a new employer as I really don't want to leave, but I cannot afford to stay either.

Thanks,

Chris

fengirl_2

First of all, you cannot claim tax relief for travel to and from work. Releif is only due for travel carried out in the course of your work.
The provision of a company car is a benefit in kind, so you are liable to tax on this. The allowance your employer pays you for business miles is the standard amount, you cannot claim any more.

punto_chris

Thanks. I already knew the first two points.

TM1976

This is discussed on this thread : http://forums.moneysavingexpert.com/showthread.html?t=1846345&highlight=company+car+fuel+p87

It's only likely to be a small amount per year though.

punto_chris

Thanks,

Basically confirms what fengirl was saying.

So I'm going to be out of pocket. Great....