Company Car - Own Fuel Self Assessment claim

Pauliec

Hello, I have tried to read through the existing posts to check if this situation has been discussed, but to no avail.

I run a company vehicle, I am using a fuel card until the end of this month. The company would then deduct my personal mileage each month. I pay my company car tax via my allowance.

From 1st April I will be running a Company supplied car, but paying all my fuel and the company will repay me @ 10p/mile (for a 1.5 diesel).
I understand that if I was driving my own vehicle, I would be able to do a self assessment and claim back the difference to 45p/mile for 10K, and 25p/mile for anything after that. To cover running costs over the simple fuel reimbursement.

Can I claim the same back if I am driving a company supplied vehicle?

Because 10p/mile doesn't actually cover the price of fuel, and I will be paying to go to work, as well as being taxed in my salary. With an average of 800-1000 miles a week, the personal cost to myself will mount up.

Can anyone give me guidance, or links to the answer please?

Dazed_and_confused

You cant claim an expense for using your own car when you aren't using your own car.

And you have misunderstood one major element of this,

I understand that if I was driving my own vehicle, I would be able to do a self assessment and claim back the difference to 45p/mile for 10K, and 25p/mile for anything after that

HMRC do not pay mileage. They pay tax relief on eligible expenses.

Which in your situation would range from £0.00/mile to £0.21/mile (in extreme circumstances). But for most it would be £0.07.

Pauliec

Hi, thanks for the response.
So if I understand correctly, my situation from 1/4/19.
Running a company supplied vehicle, whilst paying for fuel, and the company reimburse me at 10p/mile.
Is as much as I can claim? Am I not eligible for any further support?

Or,
If I decided to take a car allowance, pay for my fuel, the company reimburse me at a defined rate of pence/mile.
I can claim the difference of pence/mile to make it up to the equivalent of 45p/mile for the 1st 10,000 miles. And 25p/mile thereafter?

The 0.00-0.21 that you refer to, how do I establish the level I would be eligible for with the HMRC?

Dazed_and_confused

Is as much as I can claim? Am I not eligible for any further support?

You might be. You should look at form P87 and continue past the using your own car section. But I think any expenses you could claim would be minimal in comparison to the 45p people using their own car can claim. Because you don't have the same costs to start with by virtue of not having to provide the car itself.

You should do some more research into this.

If I decided to take a car allowance, pay for my fuel, the company reimburse me at a defined rate of pence/mile.
I can claim the difference of pence/mile to make it up to the equivalent of 45p/mile for the 1st 10,000 miles. And 25p/mile thereafter?

No

HMRC do not pay your mileage! If they did why would any employer ever pay anything to their employees!

If you were using your own car you could claim tax relief on the difference (for qualifying business mileage)

Looking at the £0.35p*/mile claimable for the first £10,000 miles
* £0.45 - £0.10

There is no actual £x.xxp/mile tax relief, in reality any eligible expenses just reduce your taxable income and your tax is re-calculated accordingly but you can get an idea of how much this would benefit you by looking at the rate of tax you you pay.

If you hadn't paid any tax in the tax year concerned then the tax relief due would be £0.00/mile

If you were liable to sufficient basic rate tax then the tax relief due would effectively be £0.07/mile (£0.35 x 20%)

If you were liable to sufficient higher rate tax then the tax relief due would effectively be £0.14/mile (£0.35 x 40%)

The figures would be different if you are Scottish resident for tax purposes and if you don't pay much tax at a particular rate you might get relief at say a little bit of 40% relief and some at 20%.