Company Car Mileage Tax Relief -

radiogagaa

Hi All,
I have spent sometime looking at numerous threads and discussions and TBH have still not worked out the answer.

Here goes to all you company car / mileage claim / HMRC experts:

I was provided with a Company Car for 3 years 2009/10, 2010/11 and 2011/12 tax years, working continuously at the same company.

This was in lieu of a £400pcm car allowance that I stopped receiving when I joined the company car scheme, so in effect I paid for the car with my allowance instead of recieving it as a cash sum with my salary, albeit taxed with my salary. I then paid all my own mileage (business and private) and claimed back each month the business element only on an expenses form at 18p per mile.

My question is although I was provided with a company vehicle which had insurance, tax, servicing all covered i still paid mileage and still in effect contributed my car allowance to provision of the vehicle - I suppose simplistically I leased it from the company is one way of looking at it instead of the car allowance.

In these circumstances can I claim mileage tax relief on the difference between the 18p per mile paid and the HMRC rates (at the time) 40p / 25p? for the given miles.

I understand about the 10,000 miles or anything over rate, its specifically a question of whether I can claim or whether it would be fraud. Again I am happy with the P87 route or filing a self assessment if claiming more than £2,500 for any given year so don't need advice on that subject.

I've seen various threads on company cars and what can be claimed and what cannot be claimed but i am struggling to know what to do for the best and much of it is contradictory.

My own view is that contractually I was entitled to have received £400pcm car allowance but I chose to contribute the whole amount and receive a company vehicle. I still paid for fuel and claimed back the business element only. Therefore i can make a valid claim for tax relief for those three years??

Thanks,

Caz3121

no a company car would not be treated as a personal car
You opted for the car instead of the money so you have a company car
If you took the money and used it to buy you own car then it is not a company car

The difference for personal car is that this payment also covers wear and tear / maintenance together with insurance - payments that a company car does not trigger

comeandgo

No, you cant claim anything back for business mileage and your tax code will reflect the fact you have a company car so tax code reduced. We are going through the same restructuring at our work and all cars to be company cars but we are getting the option of getting all fuel paid for by our company, and taxed by IR for same. or get the mileage rate set by HR, which if you are a high mileage user you should still be quids in at 18p per mile.

radiogagaa

Thanks for the replies....

I am still confused nevertheless. The HMRC website states the following:

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."

Can anyone explain to me what this actually means and in which circumstances tax relief would be paid on a company vehicle??

Thanks,

princessdon

radiogagaa wrote: »

Thanks for the replies....

I am still confused nevertheless. The HMRC website states the following:

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."

Can anyone explain to me what this actually means and in which circumstances tax relief would be paid on a company vehicle??

Thanks,

When you fill up with fuel you keep your receipt. If the fuel (business miles only and documented, no personal allowance) is not covered on your expenses or the employer doesn't pay you can claim the fuel cost.

Eg you fill up - costs £50, employer gives you £50 expenses, you can't claim.

Eg, you fill up - costs £50, employer gives you nothing, you can claim fuel.

My understanding anyway, though I prefer car allowance.

nomunnofun

princessdon wrote: »

Eg you fill up - costs £50, employer gives you £50 expenses, you can't claim.

Eg, you fill up - costs £50, employer gives you nothing, you can claim fuel.

My understanding anyway, though I prefer car allowance.

Not my understanding. Would there not be a private element?
If the employer does not pay for business mileage at the set rate for the company car, you can claim the difference. For example, the HMRC agreed rate for the car is 15p per mile. On 3000 business miles you can claim £450 if the employer pays nothing. If they pay 10p per mile, you claim £150.