Claiming Business Mileage

willpatey

BoGoF wrote: »

Keep it simple - dont be trying to convert the business fuel spend to some figure of mileage allowance to be deducted from the 45ppm. It won't work.

I think part of the problem is that as I am paying my personal mileage back it wont ever show on my P11D as a taxable benefit.

BoGoF

willpatey wrote: »

I think part of the problem is that as I am paying my personal mileage back it wont ever show on my P11D as a taxable benefit.

Your employer is obliged to report it even it is for a business purpose.

David_Allan

On a similar note can someone please advise.

Until recently I used my car for business use and was reimbursed at 11p/mile, plus I was also paid a £6k car allowance which was taxed at 40% in the normal manner with my monthly salary.
I deduct my private miles via monthly mileage log when making mileage claim thus no benifit in kind applicable.
Over the last 3 years I have claimed back the tax relief on the difference between what paid by my employer and the HMRC mileage rates via self assessment, which has been around £2k per year.

I have recently changed jobs and again use my car for business miles, with car allowance also paid.
The only difference is that my employer will provide a fuel card for business use only again.
I have to complete a monthly mileage log with my private miles deducted at a nominal rate thus no benefit in kind implications.
Given that I am not paying for my fuel directly and reclaiming from my employer as they are providing fuel card can I still claim the tax relief on the business miles in the normal manner.
In effect it is really the same thing.
I was simply going to use the cost of the business fuel within the self assessment here, but I have been given conflicting information on this.

Can someone please advise on this.
Thanks

Can

redpete

David_Allan wrote: »

my employer will provide a fuel card for business use only again.
I have to complete a monthly mileage log with my private miles deducted at a nominal rate thus no benefit in kind implications.

not sure what this means - do you pay the company a nominal amount per mile back to your employer for the personal miles?

Given that I am not paying for my fuel directly and reclaiming from my employer as they are providing fuel card can I still claim the tax relief on the business miles in the normal manner.
In effect it is really the same thing.

You get a tank of petrol provided by your employer. The value of this is the amount charged on the fuel card less whatever you pay back for personal miles. You can claim tax relief on the difference between this value and 45/25p per business mile.

David_Allan

My employer provides a fuel card for business miles only.
My employer deducts the private miles entered in the monthly mileage log from my monthly wages at 11p/mile.

So my intention is to deduct the cost of the private miles from the cost of the fuel and enter this net cost within the self assessment.
I will then claim back the tax relief on the difference applying the HMRC mileage rates.

Does this sound right?
Cheers

redpete

David_Allan wrote: »

Does this sound right?
Cheers

Seems correct

00ec25

David_Allan wrote: »

My employer provides a fuel card for business miles only.
My employer deducts the private miles entered in the monthly mileage log from my monthly wages at 11p/mile.

not how i would word it, your employer provides a fuel card which pays for all fuel used in your car

at the end of the month from that total cost the employer claims back, via payroll deduction, a monetary amount equal to private miles x 11ppm. That leaves a net total cost of business fuel paid by the employer

David_Allan wrote: »

So my intention is to deduct the cost of the private miles from the cost of the fuel and enter this net cost within the self assessment.
I will then claim back the tax relief on the difference applying the HMRC mileage rates.

Does this sound right?
Cheers

assuming you know the total cost of the fuel paid on the card that month then yes, the net figure you mention would be the one to use against business mileage @ 45ppm and the monetary difference between those 2 totals is what you claim as a cost on your tax relief claim

Arrius

There is a limit to business miles that can be reimbursed by HMRC.

For cars and vans, it is 45p per mile up to 10.000 miles, after 10.000 miles it is 25p per mile.

What you need to do is to keep detailed records of every trip you make with your own car for work. There are GPS tracking devices and APPs that can help you keep detailed mileage logs so you can inform your boss to reimburse you accordingly.

12p per mile is too low compared to the mileage tax deduction rate HMRC determined.

Caz3121

Arrius wrote: »

12p per mile is too low compared to the mileage tax deduction rate HMRC determined.

not sure if you read the opening post but the OP has a fuel card so doesn't pay anything as it is all billed direct to the company
The OP is being charged 12p per mile for their personal usage and the OP has been given the correct answer over 4 months ago

Arrius

Sorry, a bit tired. Didn't notice the date of the posts.