Can I pay remaining petrol expenses from HMRC?

Andrew_Ryan_89

Hi guys,

As I get a car allowance, I only get 10p expenses for every mile I drive. A colleague of mine said I can reclaim the remaining 35p from HMRC. Is this correct?

Dazed_and_confused

No.

You may however be eligible to claim tax relief on the 35 pence which, depending on your personal circumstances, would equate to anywhere from 0p to 15.75p per mile.

You cannot claim for "every mile I drive", just business mileage.

jobbingmusician

Hmmm. I don't think either of these pieces of information are correct.

1. If you DON'T get a car allowance, you can claim 45p for every business mile driven. (For a 'smaller car' more for a larger car. Details are easy to Google.) If your employer pays less than 45p a mile, you can claim the remainer through a self-assessment tax return.

2. If you DO get a car allowance, then god only knows. We would have to have details of your firm's car allowances and rules to have any idea. But you could look up rates on the HRMC website, which may or may not be helpful. I am guessing that you are given the HMRC rate on the car allowance and then taxed on the 10p per mile, but I stress this is simply a guess.....

kleapatra

You can claim tax relief on the 35p for every business mile you have done. This is regardless of whether it's a company car or not. So if you did 1000 business miles last years, you can claim tax relief on £350 which would be £70 (assuming you are a basic rate tax payer).

Incidentally, the amount of 45p per mile is the same, regardless of the size of your car.

Mazzone10

Just remember that it is up to 10,000 business miles at 45p then 25p thereafter.

Darksparkle

If you receive a car allowance then it's not a company car so the 45p/25p mileage applies.

As said this only applies to business mileage, not all mileage.

It is given as tax relief, HMRC won't pay your mileage because your employer won't.

If your expenses are less than £2,500 then complete a P87 (unless you already complete self assessment for another reason). If over £2,500 then complete self assessment.