Company car mileage shortfall ? tax rebate.

poet123

DH has a company car and is allowed to claim 13p per mile for Diesel for business travel. He drives approx 10,000 business miles per year and calculates that he is losing 2p per mile on every trip.

Colleagues have stated they claim the difference back from the IR, is this correct? and if so, how is it done and how far back can you claim?

Any info appreciated.

Linton

You can claim the tax on the difference, not the difference. You put down the difference between the amount provided by the employer and the cost as a business expense.

BoGoF

Demonstrating that he is losing 2p per mile is going to be difficult to show though especially if you are using the car for private and business use.

The onus is on the claimant to show that it costs more than 13p per mile for fuel, and you will need good mileage records to show that this is the case.

real1314

HMRC have a "fuel only" mileage rate for business use. You should check it (on their website somewhere) and claim. It's changed 2/3/4 times a year.

Bear in mind that if it's 2p higher than the company pays, he'll get 10,000 (miles) x 2p x 20% (or 40% if he's a higher rate taxpayer).

= £40

BoGoF

You cannot use the advisory fuel rates to claim tax relief where your employer reimburses you less. Any claim must be based on actual costs.