Claiming difference in mileage allowance 25p to 45p/mile

Mearsy01

Afternoon all,

My query is with regards to the business mileage allowance and claiming the difference between the employer contribution versus the HMRC allowance. For a privately owned car this is 45 pence per mile up to 10K miles in a tax year. My employer pays me 25 pence per mile. I have tried to claim the difference, which would be 20 pence per mile, from the HMRC. They have replied having given me the tax back (i.e. 20% of my total claim) but why haven't they given me the full 20 pence difference?

Is there a different claim form I need for this?

Separate question - why don't my employer pay their employees the full 25p? What's in it for them to only give a portion back, and cause me the inconvenience of chasing up the rest - unsuccessfully so far!!

k3lvc

Who told you you'd get the full 20p - hopefully you've not spent it yet


https://www.gov.uk/tax-relief-for-employees/business-mileage-fuel-costs is your friend and will tell you all you need to know

Tom99

You get tax relief on the 20p so 4p less tax.

If the taxman had to make up the difference then if your employer paid 1p the taxman would have to give you 39p

The reason your employer does not give you 45p is that it saves them 20p.