Mileage Tax Relief

Caroline291187

I explained it was a leased car through my work.

BoGoF

Which as has been explained will be highly likely be considered a company car.

Caroline291187

Possibly - but I have been advised to submit a P87. On checking the HMRC website it states company cars are eligible for the tax relief? So if I was classed as being a company car user then I would be eligible?

BoGoF

No......the 12ppm would be your lot

00ec25

Caroline291187 wrote: »

So if I was classed as being a company car user then I would be eligible?

you would be entitled to claim at the Advisory Fuel Rate. That value depends on the engine size and type of fuel used. The rate also varies from time to time both up and down so you may be "in profit" if paid above the rate and thus liable to pay tax on that profit or "in debt" and able to claim tax relief on the difference between the rate and what you got.

12ppm was and is currently the rate applicable to a diesel car >2,000cc, you may or may not therefore achieve a figure worth claiming (or tax you have to pay) if you do the sums

if you have a petrol engine, 12ppm is too low and there is more scope:

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

historic rates:
https://www.gov.uk/government/publications/advisory-fuel-rates/advisory-fuel-rates-1-september-2011-to-29-february-2016

antrobus

Caroline291187 wrote: »

Possibly - but I have been advised to submit a P87. On checking the HMRC website it states company cars are eligible for the tax relief? So if I was classed as being a company car user then I would be eligible?

The NHS does not do company cars. You probably have a car provided by NHS Fleet Solutions who do salary sacrifice cars. So it's your car.

But you can claim mileage tax relief on your own car if you use it for work.

https://www.gov.uk/tax-relief-for-employees/vehicles-you-use-for-work

Relief is available at 45p a mile for the first 10,000 miles. The Trust pays you 12p a mile, so you get relief on the difference of 33p a mile. If you're a basic rate taxpayer you'll get back 6.6p a mile.

BoGoF

The NHS does do company cars.....ultimately they are making a car available to the employee, that is what creates s car benefit charge, leased or not.

dori2o

The benefit in kind charge applies in these cases mainly (but not in all cases) because the lease is provided at a preferential rate via an employer scheme. That rate will not be available to the general public. Therefore a BIK exists. When I worked at British Aerospace we had a similar deal with Rover dealerships.

It will be treated as a company car for tax purposes and you will not be entitled to claim the 45p rate as this covers not just fuel but servicing/maintenance costs. You suffer none of these costs with company cars.

Its likely the 12p rate is the maximum you can claim.

When HMRC receive your P87 they will see the P11d/Company car details and allow the advisory rate only.

If this is a salary sacrifice scheme tthen the rules will have changed from 6 April this year.

See the Gov. uk website for further info as to whether this might affect your circumstances

sheramber

The quoted link to the NHS bulletin advises it is treated as a company car