Company Car - claiming fuel cost

slsteve

Hi all, looking for some advice as I am struggling to find the right answer. I currently have my own car that I use for company use. My company pay all of my fuel via a fuel card. 
All my private mileage is charged back to me and deducted a source. So my company charge me 12p for every private mile I travel.
So main question, how do I claim the 45p per private mile?? If I have already paid my company 12p for my private miles and I have not technically bought any fuel. Think I am losing money on this deal and my company claiming back the VAT on all of my fuel purchase. 

any advice?  

comeandgo

You can't claim on private miles.  Think about it, you could drive day and night and have a thousand miles a week private.  Nice little earner.

Scrapit

slsteve said:

Hi all, looking for some advice as I am struggling to find the right answer. I currently have my own car that I use for company use. My company pay all of my fuel via a fuel card. 
All my private mileage is charged back to me and deducted a source. So my company charge me 12p for every private mile I travel.
So main question, how do I claim the 45p per private mile?? If I have already paid my company 12p for my private miles and I have not technically bought any fuel. Think I am losing money on this deal and my company claiming back the VAT on all of my fuel purchase. 

any advice?  

What are you claiming for? The company has paid for the fuel and then charge you 12p a mile for it ie claim it from you. Wheres your expense?

bigadaj

If the company are claiming the vat on your private mileage they shouldn't be.

Grumpy_chap

You can reclaim the difference between 12p and 45p/25p on business mileage (only) through your tax return.

Car_54

bigadaj said:

If the company are claiming the vat on your private mileage they shouldn't be.

The company are, in effect, buying fuel (inc. VAT) and then selling some of it to their employee, again including VAT. Nothing wrong there.

Car_54

Grumpy_chap said:

You can reclaim the difference between 12p and 45p/25p on business mileage (only) through your tax return.

The OP is not being paid for business mileage, rather the company is supplying fuel. Nothing paid, so nothing to claim.

molerat

I think OP is losing out, they are paying for their own use fuel at cost but only effectively receiving around 12p per mile for business use - the employer is ripping them off.  They should tell the company they would rather have the 45p/25p rate instead of fuel.  But surely they should be able to claim the tax back on the £ total of the 45p/25p annual mileage plus the 12ps repaid less the total cost of fuel provided as fuel alone does not cover the use of the car.

Dr_Crypto

Whether they are losing out or not depends on how many private miles they are doing, no? 

They’re getting very cheap fuel in exchange for not getting the wear and tear element of mileage expenses as I read it. 

Car_54

Dr_Crypto said:

Whether they are losing out or not depends on how many private miles they are doing, no? 

They’re getting very cheap fuel in exchange for not getting the wear and tear element of mileage expenses as I read it. 

It's not necessarily very cheap. My electronic fag-packet says 12p is about right if he gets 40 mpg. If he gets more than that, it would be cheaper at the pumps.

DoaM

My car (diesel) does high 40s mpg. When I was buying my own fuel it was costing me 11-12p per mile. As it is a company car I expensed business miles and got 11p or 12p per mile (depending on the prevailing expense rate) so I was pretty much breaking even. I now have  fuel card whereby business miles are covered (by recording trips) and I get debited from salary any personal miles ... however the charge rate is only 8p per mile, so I now actually make a relative profit or 3-4p per mile.