Car Scheme tax question

sillysladey

Hello All,
I have a brand new car under a work benefit scheme (Justdrive) but I also receive a car allowance (£5.2k pa). My work pay me 11p per business mile and in the past year I think I have done around 8k.
Someone at work has said that I can reclaim the tax relief on the difference between what the government guidelines are (45p) vs what I receive (15p). Can I just confirm is that correct? I didn't think I would be entitled to anything, but as a 40% tax payer this could be a good chunk of money? Circa £1088. (8000*(0.45-0.11) *40% = £1088.


Many Thanks,

sheramber

Does the Just Drive scheme cover servicing, insurance, breakdown cover etc.?

sillysladey

sorry yes, thank you.

sillysladey

yes it does include all aspects; insurance, breakdown cover, servicing.


Many Thanks

dori2o

So its a lease scheme?

If so, is the price you pay given at a preferential rate because of an agreement with your employer? Is the same deal available to the general public?

Credit-Crunched

dori2o wrote: »

So its a lease scheme?

If so, is the price you pay given at a preferential rate because of an agreement with your employer? Is the same deal available to the general public?

This is the key question, if you are receiving any benefit as a result of your employer engaging in preferential terms, then it will be a benefit in kind. If I could walk into the garage and obtain the same deal, then no BIK.

sheramber

http://www.inchcapefleetsolutions.co.uk/products/justdrive

dori2o

sheramber wrote: »

http://www.inchcapefleetsolutions.co.uk/products/justdrive

OP. That suggests to me that a benefit in kind will apply as the deal seems to be preferential based on your employer signing up to it and it not being available to the general public, therefore its considered a company car and the 45p/25p mileage rates wouldnt apply and you could only claim upto the HMRC advisory rates, and as your employer seems to be paying 11p per mile your likely getting all the relief due.

See the advisory rates here https://www.gov.uk/government/publications/advisory-fuel-rates

The reason for this is that a) the 45p/25p rates only apply to the use of your own vehicle for business travel, and b) they account for things like servicing, wear and tear, tyres etc etc. Under this lease scheme you suffer none of that cost.

See this for more information
https://www.employeebenefits.co.uk/issues/march-2014/all-employers-need-to-know-about-car-salary-sacrifice-schemes/