Car Allowance from Work - Mileage Expenses...

mb78

Hi

After a bit of advice before speaking to my employer..

I get a Car Allowance (very small one) and its funding a basic Petrol car to get around for meetings etc.

Any work mileage I do I claim back from the company - but they've given me a print out from Gov website which for my car/engine size says 11p per mile. This sheet mentions states "These rates only apply to employees using a company car." which mine isn't

https://www.gov.uk/government/publications/advisory-fuel-rates/advisory-fuel-rates-from-1-march-2016

I know for Private cars i can claim 45p per mile but what your employer pays is up to them.

I believe my employer is wrong in using the rates for Company Car drivers not private cars.

11p per mile literally hardly covers the cost of the fuel itself.

I've looked into claiming the difference back from Government, but this can only be done after the end of the tax year... and you only get the VAT back on that amount. So if i claimed 2000 miles at 34p (the difference from what i get paid) i would only get £136 back.

Just wanted calcification they are wrong and if they've given me the wrong details?

thanks

AdrianC

mb78 wrote: »

11p per mile literally hardly covers the cost of the fuel itself.

The car allowance is intended to cover the rest.

Just wanted calcification they are wrong

...well, that's a new one...

mb78

AdrianC wrote: »

The car allowance is intended to cover the rest.

They give £150 a month for an allowance... then that is taxed 20%...

Leaves me with £120 a month for a new car... My car is the cheapest could find with the mileage i need that's £150 on contract hire.

Tom99

Do you only do 2,000 business miles a year?

If you are only doing 2,000 miles a year you are getting £120 x 12 = £1,440 plus 2,000 x 11p = £220 so a total of £1,660 which equates to 83p per mile for 2,000 miles so you are doing quite well.

If you do more than 2,000 miles a year the equation will be different.

If you were paid 45p for 2,000 you would get £900 so a lot less then you appear to be getting.

AdrianC

mb78 wrote: »

They give £150 a month for an allowance... then that is taxed 20%...

Leaves me with £120 a month for a new car... My car is the cheapest could find with the mileage i need that's £150 on contract hire.

And you wouldn't have a car at all without needing it for business?

bigadaj

Surely the OP can claim the difference back at his marginal rate by tax return or simple notice, so 2000 miles @34p @20%?

So should be able to get back £136 per year, not a fortune but worth having.

sheramber

From the first post the OP us aware hr can get £136 but it would appear he doesn't think that is enough.

There is no amount your employer must pay. That is between you and him.

The 11p per mile is the amount he can pay to company car drivers without having to advise HMRC.

45p per mile is the amount up to which they can pay those who use their own car without having to advise HMRC.

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2017-to-2018

Tom99

If the OP can claim £136 tax back as well as the £1,660 they are already getting, that equals 90p per mile so not bad at all, providing 2,000 miles was the yearly figure.

bigadaj

Yes it's their reference to vat that confused me.

A set monthly amount obviously works better on low mileages, though some may view it as part of the salary or employment package.

Not sure what the OP wants really, I know some firms do pay full mileage rates even after a car allowance but it's not common in my experience, maybe they could look at getting a company car but that might cost them more in tax.

Otherwise look for a new job.

Tom99

The NHS did have something similar where a small amount was paid per month to essential car users and then a reduce amount per mile of about 30p. I think that changed and they now pay per mile only.

pm86

Your company is correct in what it gives for mileage.

If you didn't get the car allowance, you'd be entitled to 45p per mile.

However, if they provide you with a company car or car allowance (with no fuel card), then 11p is correct and then you can claim back some through the taxman.

Kind regards.