Fuel allowance, tax return.

Jonpot

Looking for some advice please.
My wife uses a company car for work purposes only.
She can claim back 45p per mile,
She receives 12p per mile from her employer, so she has completed an online fuel allowance form and is claiming back the remainder of 45p which is 33p per mile.
She has claimed fuel allowance for the last 4 years.
The figures that she got from her employer calculates to over £6000 over the 4 year period.
After a lot of messing around from HMRC , they have now said she's only entitled to 20% of the total claim.
Does this sound correct  ?
It didn't say anything about 20% when completing the form, and all people she has spoken to from HMRC haven't mentioned anything about 20%,
exept the last person she spoke to.
Can anyone advise please , is this correct  ?

molerat

If it is a company car she is not entitled to the 45p per mile, that is for using your own vehicle as it covers fuel and maintenance.  She is only entitled to the advisory fuel rate https://www.gov.uk/guidance/advisory-fuel-rates  She needs to work out the actual costs per mile for each 3 month period and work out if it is worth claiming the 20%.  Until recently 12p more than covered it for most cars. She has technically submitted a fraudulent tax claim.

If it was a genuine difference between the paid amount and 45p then yes, she would only be entitled to the tax paid on that difference.  The government do not pay for your mileage, the same as any other allowable expense you are entitled to not pay tax on that amount.