Petrol reimbursement 8.5p, costing me 13p!

Dijor

Help! Any advice greatly received.

My husband has a petrol company car, for which he is reimbursed at the end of each month at the rate of 8.5p for each mile travelled. He has worked out that it actually costs 13p approximately per mile, so effectively we are subsidising his business mileage. He currently drives on average 600 miles per month so this amount is not insubstantial when worked out over a year.

Is there anything he can do? I know there is some way of claiming this back from the Inland Revenue but are unsure how to go about it so any advice on this would be welcomed.

He has tried to get his rate raised but is hitting a brick wall.:mad:

Thanks in anticipation!

nej

Take it up with the company - this is the lowest rate I've ever seen. He should not be out of pocket for doing his job, plain and simple.

You can claim back the tax difference on the allowed rate (40p/mile for firdt 10k miles I think) and what he received. I just wrote to the tax office with the figures and got a cheque.

Does he have a company car or car allowance? Doesn't matter, just interested. My company paid 40p/mile if it was your own car or 14p if it was a company car/car allowance.

payless

Believe the 40p is based on own car usage

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there's stuff about fual only.... not sure if written in stone
http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

longforgotten

You have said that it is a company car and your husband gets re-imbursed business mileage presumably because he pays for all the fuel whether business or private.

The advisory rate for the re-imbursement of business mileage on a petrol company car , isbased on engine size of the vehicle and from 1/2/07 is .....

1400cc or less, 9p
1401cc to 2000cc, 11p
Over 2000CC, 16p