Company Car - claiming fuel cost

Grumpy_chap

molerat said:

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.  

I suspect the OP has not shared the full information.  The only cases I have ever seen where a user gets a fuel card with private car is when the employee takes the car allowance instead of company car, but still gets the fuel card. 
It is an arrangement that can work out very tax effective.

[Deleted User] said:

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.

Oh yes there is.  To demonstrate, I need to use some assumed figures.

1. OP drives 10k private and 20k business miles / year
2. OP gets 40 mpg at fuel cost £1.10 / litre (£5/gallon)
3. In a year, the OP receives £3,750 via the fuel card.  
4. There is an off-set against this for the private mileage for which the OP has reimbursed the employer.  £10k miles at 12 pence per mile paid by the OP = £1,200.  (Actual fuel cost £1,250/year)
5. That reduces the tax liability by £1,200 / year to £2,550.  This is taxed at marginal rate.
6. Now, when doing tax return, the OP can claim the rates allowed by IR for use of private car.
7. First 10k miles at 45 pence = £4,500
8. Second 10k miles at 25 pence = £2,500
9. Tax return will show:

• fuel card benefit £3,750
• less made good by employee £1,200
• nett tax on fuel card £2,550
• less business mileage claim against tax £7k allowance on tax return
• actual tax at the end of the year is a benefit to the employee as £7k - £2,550 = £4,450 against tax due at marginal rate.

slsteve

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?  

Hi Gent's sorry I made a typo. "So main question, how do I claim the 45p per business mile?" Also you are correct, I am sure the company claim all the VAT on the fuel I buy on the fuel card that they provide me. So does the calculation still stand of 45p - 12p is what I claim from the tax man? I don't see why this is true. Private miles I pay for, end of story but the few thousand business miles  that I do should in my mind be a direct 45p as I do nothing private when out on a trip. Am I right?
Thank you all for contributing. Steve

unforeseen

You missed the point made in other posts. The employer is covering the costs of the business miles. You aren't being paid anything for them. 
You are expected to pay 12p per mile for your PRIVATE mileage. I.E. the mileage that you are not entitled to claim tax relief for.

Business mileage costs you nothing as that is covered by the employer. 

photome

Why would  be able claim 45p per mile when the fuel is paid for by the company

Grumpy_chap

slsteve said:

"So main question, how do I claim the 45p per business mile?" 

Steve - Yes, you can claim the tax against the 45p/mile (reduces to 25p/mile after 10,000 miles) for business mileage only.  This is done through your tax return.  Does my post above not help with this?  If that is not clear, then at which part do you get lost and I'll try to re-phrase.

molerat

photome said:

Why would  be able claim 45p per mile when the fuel is paid for by the company

Fuel is not the only part of business mileage, that is considered to be between 4p and 17p depending on the fuel and engine size.  OP can claim on the difference between the 45p/25p and value of fuel provided.

Scrapit

slsteve said:

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?  

Hi Gent's sorry I made a typo. "So main question, how do I claim the 45p per business mile?" Also you are correct, I am sure the company claim all the VAT on the fuel I buy on the fuel card that they provide me. So does the calculation still stand of 45p - 12p is what I claim from the tax man? I don't see why this is true. Private miles I pay for, end of story but the few thousand business miles  that I do should in my mind be a direct 45p as I do nothing private when out on a trip. Am I right?
Thank you all for contributing. Steve

That changes alot, the cost of wear and tear,, tax MOT, insurance etc needs to be claimed for in that case