Personal and company mileage

Reromi701

Hi, I recently received a new company car that is a Plug-in Hybrid. However, I am facing a problem as I typically drive around 1500 miles per month and only receive 14-15p per mile from my employer. The issue is that the car is not very economical, so every month I end up paying an additional £200 for the extra fuel used, which my employer considers as personal miles. I have tried to explain this to them, stating that for every 100 miles I drive, I only receive £14, but the fuel costs me £20-25. Can you please provide me with some advice on how to handle this situation? Thank you.

DullGreyGuy

HMRC sets the advisory level of fuel allowance to pay employees based on the fuel type and engine size. If employers stick to that there are no taxes involved and they dont have to justify it which is why most do use the advisory rates. 

Employers can use a higher rate if they show the actual cost is higher than the advisory rate but this is most likely done using the official MPG from the manufacturers and them just demonstrating their fleet happens to have a worse than average choice of vehicle rather than arguing that the MPG being achieved is worse than manufacturers listed. Few employers are willing to do this and if they are investigated and found to be erroneous in their calcs then additional taxes are due. 

https://www.gov.uk/tax-relief-for-employees/vehicles-you-use-for-work

You can use the above form to claim relief for  any work related expenses, inc vehicles, where either the the employer doesnt reimburse or doesnt fully reimburse. You'd be claiming the difference.

What vehicle is it that the running costs for a PHEV are worse than a standard petrol car?

TELLIT01

The cost of your personal mileage in a company car will be of no concern to the company.  The alternative is to purchase a more economical car for personal use and only use the company car on company business.

LeafGreen

TELLIT01 said:

The cost of your personal mileage in a company car will be of no concern to the company.  The alternative is to purchase a more economical car for personal use and only use the company car on company business.

sounds like they are losing money even on the business mileage, that wouldn't change even if they did have a different car for personal use.

OP. did you choose the model of car yourself?

penners324

Reromi701 said:

Hi, I recently received a new company car that is a Plug-in Hybrid. However, I am facing a problem as I typically drive around 1500 miles per month and only receive 14-15p per mile from my employer. The issue is that the car is not very economical, so every month I end up paying an additional £200 for the extra fuel used, which my employer considers as personal miles. I have tried to explain this to them, stating that for every 100 miles I drive, I only receive £14, but the fuel costs me £20-25. Can you please provide me with some advice on how to handle this situation? Thank you.

How are you driving it? It definitely shouldn't cost that much to run a car.

A petrol only car will be £50 ish to go 400 miles. Not £80+