Mileage Allowance Relief

LilElvis

Hoping for some help as I'm trying to complete my husband's 18/19 tax return and I can't find an answer in any HMRC guidance notes I've looked at.

My husband had a company car for the majority of 18/19 but changed to a personal car in March 19. As his employer only reimburses at a rate of 19p per mile I am looking to claim mileage allowance relief for the difference between this and the HMRC mileage rates. The question I have is whether I should claim the difference between the amount paid and 45p/mile as he only drove around 1,000 business miles in his personal car in 18/19 or whether I should only claim on the difference to 26p/mile as during the 11 months of 18/19 when he had use of a company car he drove in excess of 10,000 miles for which he was reimbursed at a rate of about 11p/mile. No personal fuel was paid for by the employer in respect of the company car.

Any help greatly appreciated!

00ec25

obviously the company car was covered in full by the employer paying at the correct rate for a company car
you cannot claim anything else for that as he had no business related extra costs with his company car

from March 19 onwards he can claim for the use of his personal car when undertaking business miles. As that was the first time using his personal car the mileage he had already done in the company car is irrelevant
you claim his personal car business miles from March @45ppm

did his employer not pay anything at all towards mileage in his personal car? I find that rather harsh if so, surely they pay business mileage?

LilElvis

00ec25 wrote: »

obviously the company car was covered in full by the employer paying at the correct rate for a company car
you cannot claim anything else for that as he had no business related extra costs with his company car

from March 19 onwards he can claim for the use of his personal car when undertaking business miles. As that was the first time using his personal car the mileage he had already done in the company car is irrelevant
you claim his personal car business miles from March @45ppm

did his employer not pay anything at all towards mileage in his personal car? I find that rather harsh if so, surely they pay business mileage?

Thanks. That was my rationale too, but I couldn't find any guidance notes that covered an in year split between company/ personal car.

He's paid 19p/mile for business use of his personal car - in addition to a payrolled car allowance of £12k pa. I ran all the numbers before he switched and purchased his own car and he's going to be much better off - even after factoring in his awful tyre puncture rate, servicing intervals and the car's depreciation over his expected ownership.

Thanks for confirming my thinking.

00ec25

so @ 19ppm your tax return is to claim the monetary difference between business miles @ 45ppm and @ 19ppm

that of course is an expense upon which tax relief at his marginal rate will be given

for the benefit of future readers who make usual mistake of not understanding what the claim is, he does not get paid 26ppm by HMRC, he gets 26pppm x his tax rate (so in cash terms he gets a tax credit of: 5.2ppm@20% or 10.4ppm @40%)

LilElvis

00ec25 wrote: »

so @ 19ppm your tax return is to claim the monetary difference between business miles @ 45ppm and @ 19ppm

that of course is an expense upon which tax relief at his marginal rate will be given

for the benefit of future readers who make usual mistake of not understanding what the claim is, he does not get paid 26ppm by HMRC, he gets 26pppm x his tax rate (so in cash terms he gets a tax credit of: 5.2ppm@20% or 10.4ppm @40%)

He only had 3 weeks in his own car in 18/19 with just over 1,000 miles so the claim on this return won't be big. In 19/20 he expects to do 17,000 business miles so that will be a much nicer £1,360 to reclaim.