Car allowance stress!

Any

I would not have a fuel card while having car allowance.
You are making it far too difficult for yourself.

Any

Also, if you do keep the card, there must be some rate at which you will be repaying the personal mileage.... You cannot just have fuel card and use it for both private and business miles and think that is it - if you won't repay back your private mileage the company will have to report the amount spent on fuel and you will get to justify to HMRC how much of it was spent on business mileage, otherwise you will pay tax on the lot.

mjpearson

thanks for replying but the fuel card situation is not a choice, it's simply the way my employer chooses to run its company cars. I could kick up a fuss about this, but I doubt they will change.

mjpearson

the clue to this answer was in my original posting, namely I pay 100% of the cost of my private fuel. If I spend 400 quid a month on fuel and drive a total of 2000 miles and 500 of these were personal miles, that's 25% of the fuel costs are mine, so the company deducts £100 from my wages. That way the HMRC does not come after me for tax on my private fuel as I paid for it fair and square. The original issue still remains though, what tax relief on the business miles. (I guess you don't know!)

Any

mjpearson wrote: »

the clue to this answer was in my original posting, namely I pay 100% of the cost of my private fuel. If I spend 400 quid a month on fuel and drive a total of 2000 miles and 500 of these were personal miles, that's 25% of the fuel costs are mine, so the company deducts £100 from my wages. That way the HMRC does not come after me for tax on my private fuel as I paid for it fair and square. The original issue still remains though, what tax relief on the business miles. (I guess you don't know!)

Well, and there I thought the clue was in your answer.
If you have cost of your private fuel, then you will have cost of the business fuel per mile (which should be exactly the same) and you claim the difference between that and the 40p for first 10k miles and 25p for the miles after.

If you spend £400 for 2000 miles, then the expense is 20p per mile. And you claim the difference on the 1500 of business miles.

Any

It is exactly the same thing as if employees bought all the fuel, claimed business miles and only got paid 20p per mile.

As long as you can differentiate between business and private miles you should be able to have the figures.

Some companies just pay the HMRC recommended FUEL rate (ignoring the personal car element, as they give the car allowance), without having to calculate it every month.

Calculating every month is O.K. with HMRC, but it is a lot of pain in the bum.

leo110303

peachyprice wrote: »

No, you won't be claiming £9200 back.

The allowance is 40p a mile for the first 10,000 miles, after that it is 25p a mile.

So if you do 30,000 business miles your employer pays you 16p per mile, you can claim TAX RELIEF on the other 24p for the first 10,000 then 9p for the remaining 20,000 miles.

10,000 x .24p = £2400
30,000 x .09p = £2700

You can claim TAX RELIEF on £ 5100

Assuming you are a basic rate tax payer you can claim back £5100 x 20% = £1020, which will either be sent to you at the end of the tax year or will be added to your tax allowance and your code adjusted.

you ACTUALLY GET TAXEd on the remainding fee... work pay you 16p per mile, then you go to HMRC for 24p per mile BUT you get taxed on it... what jokers
Ido this every year and I dont get whats expected