Company car mileage tax relief

elfrider

I work for a FTSE100 company and in my previous role (in which I was not entitled to a company car) I was paid 45p a mile to use my own car for business use when the need arose- this figure is in line with the HMRC guidelines for business mileage so I fully understand why it was set at this.

I have recently started a new role in which I am entitled to a company car, but have elected to take a monthly allowance instead (and use my own car for work), which is added to my monthly pay packet and is therefore subject to tax and NI at the appropriate rate. Instead of receiving 45p a mile as before, I now receive 14p a mile for my business mileage. After reading many threads on this subject, it would appear that I am entitled to claim tax relief on the other 31p per mile (up to 10k miles). I've always thought that the monthly allowance I receive is to make up for the fact that I am being paid 31p less per mile, but many people online are of the opinion that the monthly allowance is irrelevant in the eyes of HMRC, and therefore I can claim the tax relief. Is this correct? I've not heard of anyone at work claiming tax relief for the remainder, but then I've never had reason to ask. I would be grateful if someone could clear this up for me.....

NYM

Yes you can claim tax relief for the difference providing you use your own vehicle of course...

You would need to complete this form. http://www.hmrc.gov.uk/forms/p87.pdf

bloolagoon

Don't confuse the issue with you "have a company car". You don't.

It's your car and you are responsible for its upkeep and it's nothing to do with the company.

elfrider

NYM wrote: »

Yes you can claim tax relief for the difference providing you use your own vehicle of course...

You would need to complete this form.

Yes it's my own vehicle I use. I've read the P87 form, is section 5 referring to the monthly allowance I receive? If so, this will cover the fact that I'm only paid 14p per mile instead of 45p and therefore I will get no tax relief.

blondebubbles wrote: »

What would happen if your monthly allowance was more than the mileage? Do you need to prove that's actually what you used it for?

The mileage allowance (14p per mile) is totally separate to the monthly allowance. The monthly allowance is a fixed sum that has been determined by the company as an equivalent to being given a company car. In other words, it covers the costs of servicing, MOT, tax, repairs, insurance, depreciation etc. If I'd taken the company car option all of this would have been paid for me by the company.

bloolagoon wrote: »

Don't confuse the issue with you "have a company car". You don't.

It's your car and you are responsible for its upkeep and it's nothing to do with the company

I'm not referring to upkeep, I'm referring to mileage. My monthly allowance is there for upkeep. I claim back 14p per mile which is 31p less than the HMRC amount, and by the look of things I can claim tax relief on the difference, which is what I need confirming.

Caz3121

elfrider wrote: »

I'm referring to mileage. My monthly allowance is there for upkeep. I claim back 14p per mile which is 31p less than the HMRC amount, and by the look of things I can claim tax relief on the difference, which is what I need confirming.

Yes you can, as per post #2

elfrider

blondebubbles wrote: »

Is it under the employee car ownership scheme?

No it's not under form of scheme.

elfrider

Caz3121 wrote: »

Yes you can, as per post #2

In that case my query is with section 5 of the claim form which states: 'If you received general expense allowances, rather than separate amounts for individual expenses,
enter the total amounts received and the types of expenses they covered.'
If this is referring to my fixed monthly allowance, it is deducted and I will therefore receive no relief...

Moto2

I get a car allowance and a personal fuel allowance
I still claim the tax back as described above

That form is for general expenses and covers many things, the expense it refers to is not your car allowance, you've been taxed on that

elfrider

Moto2 wrote: »

I get a car allowance and a personal fuel allowance
I still claim the tax back as described above

That form is for general expenses and covers many things, the expense it refers to is not your car allowance, you've been taxed on that

Thanks for that, I just didn't want to leave that section blank, receive my tax relief, then be told later on that I haven't declared all my received expenses and have to pay a load back.

elfrider

Thanks all for the help.

Moto2

The only bits you fill in if you're only claiming for the mileage is on page 2 [then copy the numbers to the summary on page 4]

like this - http://i.imgur.com/YungJct.jpg

The figure in box 7 is the sum of all the 14p you've received from your company