Seriously Out of Pocket on Company Fuel

ilovebanksMCMLXXXI

Hi

Any advice would be great and I'll keep this is brief as possible.

Have been in a new job 3 months; they agreed to pay my business fuel (is in my contract) i.e. my business mileage would be refunded.

It is a company car so therefore the Inland Revenue advise 15ppm on the particular car I drive (a 2400cc Diesel).

However, the car costs 24ppm to run and therefore I feel I am funding their business to the tune of 9ppm.

When you consider I am doing 4,000 business miles per month this is quite a lot of money that I want back.

They have been telling me they are looking into it but I'm getting nowhere and it doesn't seem to be anyone's priority.

Am I within my rights to try an reclaim the 9ppm shortfall because facts are facts and I'm paying 24ppm and therefore funding their business.

Any advice/thoughts would be great.

Many thanks :j

katiekittykat1977

I have just left my job after 6 months because of the very same thing. I was also given business expenses at the rate of 15ppm (HMRC guidelines) but when I put in my expenses claim I got roughly a third back of what I put in the car. I was the valuer for an estate agents, so I was pretty much driving around in the car all day.

I also disagreed with covering what would be a business expense (in this case the company car was not a perk - I was obliged to have it), complained but got nowhere, so I resigned. To add insult to injury, I often had to wait 6 weeks from putting in an expense claim to get anything back at all.

Floxxie

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

katiekittykat1977

Floxxie wrote: »

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

I was told this only applies if you haven't claimed any expenses - I have been claiming them for 6 months at the rate of 15ppm.

Kiran

You are entitled to claim back tax relief on anything less than 40ppm. This will take into account the 15ppm that you have already been paid so you should see 20% (40% if you are a higher rate tax payer) back of the 25ppm which you are not receiving. This only counts for business miles and not to your place of work eg head office.

Kiran

BTW, how are you only getting that fuel economy, what are you driving? I am running a 2l diesel at 9ppm average? Not driving at 56mph in top gear or anything like that either

heretolearn_2

The 40ppm is for use of your own car, and it includes an amount for tax, insurance, mot, servicing etc so is not applicable when it's a company car and these expenses are covered for you.

I think the main problem is that fuel costs have rocketed lately but the amount ppm only gets set once a year.

Floxxie

From the link I posted earlier:

You may be able to get tax relief for business mileage when you use your own vehicle on business, or for fuel you buy when you use a company car