Tax relief on Company Car Mileage

radiogagaa

All,

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??

What does the dispensation element mean??

Thanks,

Caz3121

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

rates for company cars here http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm (not the 45p etc as used for personal vehicles)

so if you drive a 1600cc petrol vehicle and your employer pays you 15p per business mile, you would claim relief on the difference eg 2p per mile (17p - 15p) I believe many employers will use the HMRC rates for company cars so in your case there may be nothing to claim

nomunnofun

radiogagaa wrote: »

All,



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

What does the dispensation element mean??

Thanks,

The employer will have applied to HMRC for permission or agreement to make certain payments to employees without the requirement to record them on a form P11D.