45p Petrol Allowance.

xclareyyx

Quick question..

Is the 45p increase in fuel allowance to employees optional for employers? Or do they have to pay this as a minimum ammount?

If it is optional is there a relief to recieve the rest back.

i.e your company pays you 40p instead can you claim back the extra 5p?


Thanks x

Gordon_Hose

It's optional.

jwruk

There's no requirement for the employer to pay any set amount, but you can claim tax relief on the difference between the amount paid by the employer (40p) and the HMRC guideline amount (45p).

dzug1

You can't claim the extra 5p or whatever it is

You can claim the TAX on the 5p back from the taxman

wealdroam

xclareyyx wrote: »

Quick question..

Is the 45p increase in fuel allowance to employees optional for employers? Or do they have to pay this as a minimum ammount?

If it is optional is there a relief to recieve the rest back.

i.e your company pays you 40p instead can you claim back the extra 5p?


Thanks x

No, that's not the way it works at all.

how much your employer pays you per mile is a matter between him and you.
If he pays 45p or less per mile, you do not have to pay income tax on that money.
If he pays you more than 45p per mile, you should pay income tax on the amount over 45p.

If he pays less than 45ppm, then you can claim income tax relief on the difference between what he pays and 45p.

Hope that helps.,

jase1

In practice, this increase equates to 1p/mile back in your pocket for business miles if you are in the standard tax bracket.