Business Mileage Tax

alanthomaswatson

Hello all

I have had a company car for many years but wasn't aware of reclaiming tax back on the fuel. I've looked at HMRC's website but have some queries if I may. Firstly a few facts:

1. I have a company car but do not receive a fuel card or fuel allowance.
2. For the mileage undertaken I am reimbursed by the company at the rates set by HMRC (currently 15ppm).

Based on the information on HMRCs website, it looks like I can claim some tax back but there is a note that:

"You can't ask for tax relief if your employer has already reimbursed you for the expense and has agreed a 'dispensation' with HM Revenue & Customs (HMRC)."

- Will the 15ppm claimed from my employer count as reimbursement?
- What counts as 'dispensation'?

The amount that can be reclaimed from my employer is getting to the point where it doesn't cover the cost of the (considerable) mileage undertaken due to the cost of fuel.

Any help much appreciated.

Alan

zagfles

Wrong forum - try the Cutting Tax forum

Hammyman

alanthomaswatson wrote: »

Hello all

I have had a company car for many years but wasn't aware of reclaiming tax back on the fuel. I've looked at HMRC's website but have some queries if I may. Firstly a few facts:

1. I have a company car but do not receive a fuel card or fuel allowance.
2. For the mileage undertaken I am reimbursed by the company at the rates set by HMRC (currently 15ppm).

Based on the information on HMRCs website, it looks like I can claim some tax back but there is a note that:

"You can't ask for tax relief if your employer has already reimbursed you for the expense and has agreed a 'dispensation' with HM Revenue & Customs (HMRC)."

- Will the 15ppm claimed from my employer count as reimbursement?
- What counts as 'dispensation'?

The amount that can be reclaimed from my employer is getting to the point where it doesn't cover the cost of the (considerable) mileage undertaken due to the cost of fuel.

Any help much appreciated.

Alan

You cannot claim anything as you are already being reimbursed at the full HMRC rate of 15ppm for company car holders for cars between 1.4L and 2L. You could only claim anything if they paid you under the HMRC rates, for example if they reimbursed at 10p pm you could claim 5p per mile from HMRC