Mileage Relief/Allowance

testertrev

Having trawled through previous posts and the HMRC website I'm still confused and hoping you can help.

Company car provided, employee buys all fuel and company reimburses employee 15p per mile for business miles. Can the employee claim any further relief i.e. difference between this and the 45p rate for example? As far as I can see this only applies to private cars but cant find a definitive statement of this anywhere on the HMRC website. A link to it, written in black and white (and plain English!) would be greatly appreciated.

Thanks in advance

Pennywise

No, the 45p covers all motoring costs, including purchase, repairs, tax and insurance. You're not paying these costs, so you can't claim the 45p per mile. The 15p per mile is presumably just to cover the fuel costs which is all you personally incur.

zygurat789

http://www.hmrc.gov.uk/cars/fuel_company_cars.htm

http://www.hmrc.gov.uk/manuals/eimanual/eim31200.htm

pjclar02

It does depend upon what the "advisory fuel rate" is for the vehicle in question. Refer to the links provided in the previous post - if driving a petrol car with an engine size of more than 2000cc then the applicable advisory rate is 26p per mile. So you can claim the difference between the 15p actually paid and the 26p advisory rate (i.e. 11p per mile).

Obviously, if the car in question is a 1400cc or less petrol engine then the advisory rate is 15p per mile and there is nothing extra to claim!

paulus

Bear in mind though, these rates are really for use when paid by an employer, rather than for claiming tax relief.

testertrev

Thanks for your replies, my colleagues have read below

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

Tax relief for fuel when using a company vehicle

If you pay for fuel when using a company vehicle for business travel you can get tax relief on fuel costs, less any payments repaid by your employer and covered by a 'dispensation'. You must keep a record of your business mileage to calculate your expenses.

I've told them that they wont get two bites at the cherry but they remain unconvinced. This would only cover the difference between the advisory rates and the rate paid by the company should it differ (it doesn't)

Caz3121

If they look at the first line of that.....
"You may be able to get tax relief for business mileage when you use your own vehicle on business"
this link does not apply to company cars

jennifernil

The page covers both scenarios, so you do need to read it carefully.