Company car fuel costs

rebelrider

My company pays me the gov recommended rate of 11p per mile for their company car, a 1.6 diesel, when I do business miles but the gov figures for recommended rates do not take into account my mpg is 15% below gov rate and fuel rate of 1.51p /lis we’ll below current price  of 1.70p/l. 

I’m well out of pocket. What can I do please?

Sandtree

Who chose the vehicle with the poor fuel efficiency? 

daveyjp

Stop using your car or ask for a pay rise.

Car_54

rebelrider said:

My company pays me the gov recommended rate of 11p per mile for their company car, a 1.6 diesel, when I do business miles but the gov figures for recommended rates do not take into account my mpg is 15% below gov rate and fuel rate of 1.51p /lis we’ll below current price  of 1.70p/l. 

I’m well out of pocket. What can I do please?

Complain to your boss?

Sandtree

Car_54 said:

rebelrider said:

My company pays me the gov recommended rate of 11p per mile for their company car, a 1.6 diesel, when I do business miles but the gov figures for recommended rates do not take into account my mpg is 15% below gov rate and fuel rate of 1.51p /lis we’ll below current price  of 1.70p/l. 

I’m well out of pocket. What can I do please?

Complain to your boss?

Really comes down to who selected the car no?

To pay above the advisory rates the company has to justify why this is and if they don't or HMRC doesn't agree then 1) the surplus doesn't count as a business expense and 2) it counts as additional income for the OP so both have more tax to pay. If it happens retrospectively then there would also be the fines for incorrect filing and interest.

If the employer insists everyone has the same car then there is an argument that they should take the consequences of that but if the OP has chosen an inefficient car when able to choose something more efficient why should the employer do the extra work and run the risk?

The rates are set quarterly and so there are always periods of wins and losses... when the current mess is over and prices drop down I am sure the OP then will be very happy to keep the statutory 30p a mile rather than arguing it should drop down in line with fuel costs again. 

[Deleted User]

rebelrider said:

My company pays me the gov recommended rate of 11p per mile for their company car, a 1.6 diesel, when I do business miles but the gov figures for recommended rates do not take into account my mpg is 15% below gov rate and fuel rate of 1.51p /lis we’ll below current price  of 1.70p/l. 

I’m well out of pocket. What can I do please?

We are all out of pocket with the price of fuel and energy going up, you aren't the only one suffering.

I don't know how many business miles you do per month but if it was say 1,000 then the difference between the 11p rate @ 1.51 and the actual cost of 1,000 miles at 1.70/l is £11.35

As for the MPG of your vehicle vs the applied rate, then there is always winners and losers in that game, always has been.

born_again

rebelrider said:

My company pays me the gov recommended rate of 11p per mile for their company car, a 1.6 diesel, when I do business miles but the gov figures for recommended rates do not take into account my mpg is 15% below gov rate and fuel rate of 1.51p /lis we’ll below current price  of 1.70p/l. 

I’m well out of pocket. What can I do please?

Learn to have a lighter right foot, drive slower & all the usual MSE fuel saving idea's to improve MPG

https://www.moneysavingexpert.com/travel/car-check/

jimjames

rebelrider said:

I’m well out of pocket. What can I do please?

Are you claiming tax relief on the difference between what you are paid and the standard HMRC rate? That will help cushion it a bit if you aren't.

Sandtree

jimjames said:

rebelrider said:

I’m well out of pocket. What can I do please?

Are you claiming tax relief on the difference between what you are paid and the standard HMRC rate? That will help cushion it a bit if you aren't.

He's paid the HMRC Standard but says its not enough

jimjames

Sandtree said:

jimjames said:

rebelrider said:

I’m well out of pocket. What can I do please?

Are you claiming tax relief on the difference between what you are paid and the standard HMRC rate? That will help cushion it a bit if you aren't.

He's paid the HMRC Standard but says its not enough

You can claim back the difference between 45p and what you are paid can't you? Or is that only for personal cars used for business?

Dazed_and_C0nfused

jimjames said:

Sandtree said:

jimjames said:

rebelrider said:

I’m well out of pocket. What can I do please?

Are you claiming tax relief on the difference between what you are paid and the standard HMRC rate? That will help cushion it a bit if you aren't.

He's paid the HMRC Standard but says its not enough

You can claim back the difference between 45p and what you are paid can't you? Or is that only for personal cars used for business?

Yes, it's not for company cars.