using own car for work - query

danlightbulb

Hi all,

My employer is making it increasingly difficult for people to use their own car for work purposes by introducing loads of red tape around the claiming process. I think this is to try to cut costs of people claiming mileage payments (employer pays around 44p per mile).

I was looking at the hmrc website and I wondered whether instead of claiming mileage payments from my employer I could claim tax relief on the same amount via my tax return. I would keep records of my business mileage each year, claim nothing from my employer during the year and then at the end of the year I would claim the tax relief on the approved 40p per mile inland revenue rate for the total mileage figure.

Can I do this?

Thanks
Dan

Bean_Counter

One reason that your employer is introducing new rules on claiming for own car use is that cnaging in health & safety rules mean that the employer now needs to make sure that your car is roadworthy, and can be liable under duty of care if its not. Hence some employers are going back to providing company cars.

To answer your question, the answer is no. You cannot claim any relief if your employer does not pay an allowance.

I presume that at 44p per mile, your employer puts the extra 4p per mile onto your P11D.

danlightbulb

yes the company does put the 4p on to the P11D.

I don't understand why I can't claim tax relief after reading this from here

http://www.hmrc.gov.uk/mileage/employee-factsheet.htm

"If you are paid less than the tax-free amount, you are entitled to Mileage Allowance Relief for the amount by which the payments you received fall short. For example, if the maximum is 40p per mile for work journeys in your car and your employer only pays you 36p per mile, you are entitled to additional tax relief of 4p per mile. You can advise HMRC of this by letter, or you can use a form available for the purpose (PDF 97K) "

Surely if i'm paid zero by my employer I can claim a difference of 40p???

Part of it is the changes in H&S (which is a total joke - my car is taxed, insured, well serviced and MOT'd and therefore roadworthy). But i think part of it is cost of paying mileage.

Andy_L

You're assuming that HRMC will involve less red tape than your employeer :-)

You only get the tax back on the 40p not the whole 40p. As a HRT thats 16p/mile, BRT 8-9p/mile - is that enough? I wouldn't use my car for that much

Bean_Counter

danlightbulb wrote: »

yes the company does put the 4p on to the P11D.

I don't understand why I can't claim tax relief after reading this from here

http://www.hmrc.gov.uk/mileage/employee-factsheet.htm

"If you are paid less than the tax-free amount, you are entitled to Mileage Allowance Relief for the amount by which the payments you received fall short. For example, if the maximum is 40p per mile for work journeys in your car and your employer only pays you 36p per mile, you are entitled to additional tax relief of 4p per mile. You can advise HMRC of this by letter, or you can use a form available for the purpose (PDF 97K) "

Surely if i'm paid zero by my employer I can claim a difference of 40p???

Part of it is the changes in H&S (which is a total joke - my car is taxed, insured, well serviced and MOT'd and therefore roadworthy). But i think part of it is cost of paying mileage.

I couldn't find the exact part of the HMRC website, I was quoting from the Tolley's tax 'bible.'

I'll have another go at the website in a bit.

Andy L is right, I believe that you are better off as you are, anyway.

lisyloo

My employer is making it increasingly difficult for people to use their own car for work purposes by introducing loads of red tape around the claiming process.

Are there alternative?
e.g. can you get a train or use a pool car?
It might be less grief.

danlightbulb

There are pool cars available but its a hassle cos I keep having to have them overnight because of mostly early starts the next day. With the pool cars being corsa's it makes it very inconvenient when I normally drive a vectra (I need the space for my 2 babies and prams etc).

I didn't realise I wouldn't get the whole 40p the hmrc website doesn't make that very clear.

Thanks all.

Bean_Counter

I agree that the HMRC website is not very clear on this. It states that you are entitled to mileage allowance relief on the difference between the approved statutory rates and the mileage allowance payment you receive. If you do not receive milegae allowance payment from your employer, then you are not entitled to the mileage allowance relief.

This may seem stupid, but as far as I am aware, unfortunately for you those are the rules.