Fuel allowances and mileage claim

corky23

Thank you for reading. My brother in law receives a fuel allowance, which is reported on his P11D, how does this work with mileage claims as the fuel allowance doesn't cover the wear and tear on his car, which the mileage claim will do? He doesn't claim mileage at the moment via his tax return and cannot claim mileage from his employer.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6443391/business-miles-help#latest
This thread might help.

Jeremy535897

Normally when an employee receives a fuel allowance from the employer, this is treated as pay and subject to tax and NIC, not reported as a benefit on form P11D. In these circumstances, as the car is the employee's, and the allowance is just  pay by another name, the employee can claim tax relief on the mileage allowance on business miles at 45p for the first 10,000 miles in a tax year, and 25p thereafter.

corky23

Grumpy_chap and Jeremy - brilliant. I shall ask him to start keeping a mileage record.