Tax relief for fuel when using a company vehicle

ponto2411

Tax relief for fuel when using a company vehicle

I have contacted the tax office 3 times and have been informed on 2 occasions that i am and once that i am not entitled to claim the tax releif on fuel for business miles, i have a company car which is fully expensed (i.e. i do not pay for services insurance etc) i pay tax for the car as a taxable benefit, i pay for all fuel myself and reclaim my business miles at 11p now 12p per mile, can anyone clarify if i am entitled to this tax releif as the mileage rate does not cover the cost of the fuel!
This is the information i have found on the HRMC website

Tax relief for fuel when using a company vehicle

If you pay for fuel when using a company vehicle for business travel you can get tax relief on fuel costs, less any payments repaid by your employer and covered by a 'dispensation'. You must keep a record of your business mileage to calculate your expenses.
You assistance is greatly appreciated in advance.

Regards

Ponto2411

reddevilled

So are you saying that you reclaim the 12p a mile from the company? If so then you can not claim any further tax relief.

Caz3121

NOT relevant for OP - this relates to using your own car not a company car....but may be useful for others


The Inland Revenue assesses mileage at 40p per mile (for the first 10,000 miles) so you can claim tax relief on the difference to what you get paid and the 40p (I have done this and backdated 2 years) You will need all your mileage records (proabably available through your expense claims) and complete the form with your total business mileage and your total payment - what you get back will be dependant on your tax code

all the details you need are here

http://www.hmrc.gov.uk/incometax/relief-mileage.htm

paulofessex

If l was you l would just complete a P87 and send it off. They may then write back asking for further info. Below is what l send them each year which they appear to accept.

Date of Journey
Mileage reading at both start and end of journey
Total Mileage each Journey
Purpose of journey
Postcode of start and end destination
Number of miles reimbursed by employer

ceeforcat

I am sorry Caz3121 but that is incorrect advice. The rate of 40p quoted is for cars personally owned, not for company cars. This is the correct link.

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

Caz3121

ceeforcat wrote: »

I am sorry Caz3121 but that is incorrect advice. The rate of 40p quoted is for cars personally owned, not for company cars. This is the correct link.

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

apologies missed that somehow in the post and answered based on it being a personal car...doh - read properly before pressing keyboard!

withabix

If you are reimbursed at HMRC's Advisory Fuel Rates , you cannot claim any tax releif unless you can prove that the rate paid is too low.

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

HMRC will use the manufacturer's figures, so if you've got a heavy right foot, you can't claim for higher consumption.

Any claim will be based on the difference between the manufacturer's published fuel consumption and the Advisory Fuel Rates. I believe that you would only get relief on the difference (if they allowed the claim at all) and not the actual difference.

Caz3121's post is wrong. That relates to the use of your OWN CAR.

Also, any mileage between your home and your permanent place of work IS NOT business mileage.

ceeforcat

Caz 3121 - Speaking from personal experience - everyone makes mistakes

Caz3121

have updated my post

Debt_Free_Chick

ponto2411 wrote: »

Tax relief for fuel when using a company vehicle

i pay for all fuel myself and reclaim my business miles at 11p now 12p per mile

Is there any reason why you can't claim the full cost of the fuel you actually put in, via an expense claim?

Are you sure of your employer's policy for fuel for company cars? Or have you mistakenly used the "own car" policy?

BoGoF

Debt_Free_Chick wrote: »

Is there any reason why you can't claim the full cost of the fuel you actually put in, via an expense claim?

Are you sure of your employer's policy for fuel for company cars? Or have you mistakenly used the "own car" policy?

The maximum the employer can reimburse (without creating a taxable benefit on the employee) is the HMRC approved mileage rate - which vary depending on engine size/fuel type. So the employer does not have much discretion in what they pay for fuel.