Tax relief on mileage...but now have fuel card

polska1979

Hi all

In a few weeks time I will be starting a new job and due to the mileage I will be doing I will be issued with a fuel card.

I can use this for private miles also.

I will receive a car allowance each month which is similar to my existing job.

Last year I did around 10k business miles, and as such claimed about 1k back in tax relief.

I'm a little confused how tax relief will work if you get a fuel card, do you waive the right to claim....I guess I've not paid for the fuel so can't claim surely?

So then how do I get taxed on the private Miles I do?

Then to add another spin on it! This tax year is going to have mileage of again somewhere in the region of 9k from my old job and then a couple of months of using the fuel card.....how's that gonna work?


Aaarrrrghhh

nearlyrich

I have a fuel card I pay tax on £4k ish (I can't remember the exact amount) you won't be claiming extra tax relief as you won't be spending money on fuel. If you pay private miles you might get some respite from the full amount of the taxable benefit of a fuel card, I don't know anyone with a fuel card who pays private miles. IF two employers in the tax year with different systems you will just claim what you are entltled to for the time you are entitled to it maybe by filling in a tax return?

polska1979

nearlyrich wrote: »

I don't know anyone with a fuel card who pays private miles. ?

Is this because they are doing no private miles or just not declaring them?

paulus

I assume that this is a private, rather than company car. The bottom line is that you can claim tax relief on business mileage at 45p per mile (up to 10k miles) less the cost of the business element of the fuel. The cost of private fuel will be taxable.

So if claiming relief via a P87 you show business miles at 45p less total cost of fuel (in mileage allowance paid box) and claim relief on the difference.

nearlyrich

polska1979 wrote: »

Is this because they are doing no private miles or just not declaring them?

At the company I work for we don't declare private miles because we pay tax on the fuel card and the company pays the bill, I don't know anyone with a fuel card who pays for private miles, their companies pay their private miles and they pay the tax on the benefit of the fuel card

paulus

Is yours a company car or private car Nearlyrich? If a company car it is normally not tax efficient to pay tax on private miles. The tax is often higher than the fuel costs so most repay private miles. If a private car it is very unusual to have fuel cards. Most pay only business mileage at HMRC's advisory fuel rates.

nearlyrich

Mine is a company car but we do have a car scheme where you can use your own car and get an allowance, the car allowance drivers also get a fuel card and pay the tax on the card.

I agree it's probably a bit cheaper to repay private miles but the hassle factor of logging every mile :eek:
The tax even at 40% on £8k ( company car tax plus fuel card tax) is approx £3200 (£266 per month)so reasonable for running a "free" new £25k car replaced every two years with no insurance tyres servicing etc.

I have looked for a deal on personal lease based on the same car and my mileage and it would cost me twice the allowance the company offer and I would still be paying tax on the fuel card so it's a no brainer for me.

We do get the value out of the fuel card as we do a fair bit of weekend travel and I don't have to spend time on expenses claims or my own money funding the fuel up front.;)