Vehicle Tax Claim

johnnyb50uk

Hi, I currently use my own personal car quite a lot for work use (im an employee). I currently keep my fuel receipts and hend them in for re-imbursement to cover the fuel cost of when I drive for work purposes. This is fine for the fuel cost, but as my usage is increasing I need to look at covering the cost of the car upkeep as well.


I have thought about doing the 45p per mile claim instead of the fuel receipt re-imbursement but it doesnt seem to add up for me.


For exmaple: Say i do 10,000 miles a year for business. That would equate to a £4,500 deduction on my taxable income, meaning £900 less tax for me to pay. But 10,000 miles will cost me about £1,500 in fuel alone, putting me £600 out of pocket, and thats without any car maintenance included.


Am I looking at this wrong?

BoGoF

In your case your claim to tax relief would be on £4,500 minus what your employer reimbursed you (say the £1500). This leaves £3000 on which you can claim relief, so £600 if you are a basic rate taxpayer.

It is not an either or situation.