Mileage relief in a company car

spudsickle

Hi

I know there are other threads concerning mileage relief but rather than hijack one I thought I would put up a new one as the circumstances are slightly different.

My employer has offered me a secondment where I would have to travel to my HO each week, covering approx 3500 miles per month. I have been able to confirm with the tax office that this would count as a temporary work place, as the secondment is for less than 2 years, so I will be able to claim mileage relief.

My issue is that I have a company car (currently field based claiming business miles) and I want to know what rates I claim. The guy at the tax office said no problem, just claim the 40p/25p on my self-assessment but I am struggling with the 'correctness' of his advice.

The detail from HMRC is waffly as usual and simply states:
Company Cars - Advisory Fuel Rates for Company Cars (about half way down the page - sorry but can't post links as new user):
'The employee can obtain relief for any actual expenses which have not been reimbursed.'

Any help with confirming the advice from the tax office would be much appreciated.

Elaine_Wilson

You have a company car. Does the company pay all servicing costs, etc? If so then they are paying for the business miles covered by the car.

You will be paying for your private miles by paying tax on the benefit in kind for the use of the car.

Now what about fuel? I take it that the company does not pay for this (since you mention you currently make claims). So you should be claiming the cost of the fuel used for business miles from the company. You would normally be entitled to claim for the journeys during the secondment but this is a matter for your contract of employment.

If the employer does not pay for business fuel then you can claim tax relief on the amounts calculated in accordance with the Advisory Fuel Rates for Company Cars. I haven't checked these for some time but expect they are about 15 - 20 p per mile.

BoGoF

The advice from the Tax Office is wrong, you cannot claim the 40p/25p rates for mileage in a company car.

What, if anything, does your company pay you for business mileage and what fuel type/engine size is the car?