Rules of Mileage Tax Relief and Fuel Card

KID77

Hello,

I know these questions get asked alot but I would like someone in the know to clarify.

I wonder if you could answer this question please and help me work out whether we are entitled to claim mileage relief please.

My husband has been using his own lease car for work since November 2011 and his employer at the time paid him a company car opt out allowance of £7800 per year which was added to his salary and taxed at 40%. He had a fuel card which he used for all fuel, business and private and my understanding is that only the private fuel was shown on the p11d for years ending 2012, 13 and 14. In the latest p11d ending 2015, no fuel was actually shown.

Would he then be eligible to claim business mileage tax relief if he didn't actually pay for the fuel or tax on the fuel?!

He changed jobs in January 2015 and again has a car allowance as part of salary but its only £5700 per year now. !Still uses a fuel card but this company then charge him monthly for personal fuel and i believe nothing will then show on the p11d.

Again, would he be eligible to claim business mileage tax relief?

Nothing online will give me a straight answer, some sites say no as we are not paying for business fuel but others say its not to do with fuel, its the wear and tear of your vehicle. Is that not what the annual car allowance covers then?!

Your advice is appreciated.

Thank you

CLAPTON

KID77 wrote: »

Hello,

I know these questions get asked alot but I would like someone in the know to clarify.

I wonder if you could answer this question please and help me work out whether we are entitled to claim mileage relief please.

My husband has been using his own lease car for work since November 2011 and his employer at the time paid him a company car opt out allowance of £7800 per year which was added to his salary and taxed at 40%. He had a fuel card which he used for all fuel, business and private and my understanding is that only the private fuel was shown on the p11d for years ending 2012, 13 and 14. In the latest p11d ending 2015, no fuel was actually shown.

Would he then be eligible to claim business mileage tax relief if he didn't actually pay for the fuel or tax on the fuel?!

He changed jobs in January 2015 and again has a car allowance as part of salary but its only £5700 per year now. !Still uses a fuel card but this company then charge him monthly for personal fuel and i believe nothing will then show on the p11d.

Again, would he be eligible to claim business mileage tax relief?

Nothing online will give me a straight answer, some sites say no as we are not paying for business fuel but others say its not to do with fuel, its the wear and tear of your vehicle. Is that not what the annual car allowance covers then?!

Your advice is appreciated.

Thank you

unless it changed recently then

-his P11d should show the entire amount on the fuel card as a benefit in kind


he then need to reclaim business miles at the usual rates (45ppm for the 10,000 and 25ppm thereafter)

KID77

Thanks for your reply CLAPTON, the value on his p11d from his previous employer is only personal fuel as he does 30k miles per year and the value is only just over one thousand pounds. His new employer are not showing anything on the p11d, I assume this is ok because they are charging him monthly for his personal fuel based on his mileage logs.
Based on this, would you say he can still claim mileage tax relief?

CLAPTON

KID77 wrote: »

Thanks for your reply CLAPTON, the value on his p11d from his previous employer is only personal fuel as he does 30k miles per year and the value is only just over one thousand pounds. His new employer are not showing anything on the p11d, I assume this is ok because they are charging him monthly for his personal fuel based on his mileage logs.
Based on this, would you say he can still claim mileage tax relief?

the mileage tax relief is intended to cover the aggregate costs of running the private car including the fuel;
so it would seem that one couldn't both have business fuel paid and claim the full 45ppm as the fuel element is being 'paid' twice

I am only familiar with the situation where the entire fuel payment in treated as BIK and then one claims tax relief on the business miles at 45ppm

so basically, I don't really know about your circumstances. Sorry.

mikheh

Sorry to Hijack this thread but I have a few questions that I cannot find clarity to on the web.


Since last June I have racked up 7000 business miles in my own car for which my employer pays me 30p/mile.


I have only just found out that the government allowance is 45p/mile and that you are able to reclaim the difference!


That works out to over £1000!


There are forms online and they seem fairly simple to fill in but there are 2 different forms. 1 is if your allowable expenses are below £2500 per year. The other, a self assessment tax form, is for if your allowable expenses are over £2500 per year.


I cannot find anywhere a clear definition of what "allowable expenses" are.


This is definitely something I want to do, it's a lot of money I'm entitled to. I will be leaving my currently employment early in the new year so need to get the ball rolling.


Any help will be greatly appreciated.


Thanks in advance.
Mike

Caz3121

mikheh wrote: »

Since last June I have racked up 7000 business miles in my own car for which my employer pays me 30p/mile.


I have only just found out that the government allowance is 45p/mile and that you are able to reclaim the difference!


That works out to over £1000!

you don't reclaim the difference, you claim the tax back on the difference
7,000 miles = £3,150 @ HMRC rates
less paid by employer = £2,100
tax relief due on £1,050
if paid tax @ 20% rate then £210 due back
if paid tax @ 40% rate then £420 due back
if paid no tax then £0 due back

CLAPTON

mikheh wrote: »

Sorry to Hijack this thread but I have a few questions that I cannot find clarity to on the web.


Since last June I have racked up 7000 business miles in my own car for which my employer pays me 30p/mile.


I have only just found out that the government allowance is 45p/mile and that you are able to reclaim the difference!


That works out to over £1000!


There are forms online and they seem fairly simple to fill in but there are 2 different forms. 1 is if your allowable expenses are below £2500 per year. The other, a self assessment tax form, is for if your allowable expenses are over £2500 per year.


I cannot find anywhere a clear definition of what "allowable expenses" are.


This is definitely something I want to do, it's a lot of money I'm entitled to. I will be leaving my currently employment early in the new year so need to get the ball rolling.


Any help will be greatly appreciated.


Thanks in advance.
Mike

one normally claims after the end of the tax year : a letter would normal suffice unless you normally fill in a tax form