Company Car Fuel Relief and 2nd Job

Grumpy_chap

So, does the 23 pence per mile paid by the Army for the mileage with the second employment as Army Reservist have to be subject to income tax?

I do not think that is the case.

I am not disputing whether the car is a company vehicle - it clearly is.  BUT is it not a company vehicle in relation to the second employment.

I understand that the two employments are treated separately.

• OP has a job for which he receives a company car plus a fuel card.  There is no mileage allowance relief associated with this job.
• OP has a second job for which he uses his 'own' car (which is the company car from the first job) and can claim mileage allowance relief.  That second employer pays mileage at a flat rate of 23 pence per mile - the difference can be claimed against tax.  The second employer may not even know whether the employee is using 'own' car or 'company' car as the second employer has not provided a company vehicle - it just happens to be a company vehicle for some other and unrelated company.  Second employer has no right to ask whether it is a 'company' car else where, but only to verify that there is insurance cover in place and the car is roadworthy.

It may seem wrong that the OP can have a car with all costs, including fuel, paid as part of his company car arrangement with his primary employer and then claim mileage for some of the costs again (double bubble), but that can be done and therefore the tax relief (mileage allowance relief) is available in relation to the second employment (for which the OP is using 'own' car).

It is unusual that the primary employer accepts the company car being used for the business of another employer (but maybe takes an 'exceptional' view for Army Reservist because of the public duty element of the role).  OP says this is not a problem as primary employer is aware and agreed.  That means as long as the insurance cover the OP, then all OK.