Company car - Mileage rates - Tax return

Pablolufc

I recently opted into the company car scheme. I am due to complete a self assessment after the financial year end. The company I work for pays 14p per mile - the current government rate is obviously 45p per mile. Is it just 20% of the 31p difference I can claim back or can I claim the full 31p back? My salary is £53k if that makes any difference.

Thank you in advance.

Isthisforreal99

You can't use those rates for a company car, they are for using your own vehicle.

You are being paid all you are entitled to for a company car.

Unless you are talking about the period prior to opting into company car acheme?

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6660816/company-car-mileage-rates-tax-return

If you have a company car, then the AMAP 45 pence / 25 pence rate does not apply.

The rate that applies is to cover fuel only for business mileage at the AFR rates. If the company is paying you 14 pence per mile, I assume that means you have a petrol car 1,400 cc to 2,000 cc. If that is correct, then the fuel rate you are being paid is all that can be paid without giving rise to a tax liability.

Pablolufc

https://forums.moneysavingexpert.com/discussion/comment/81933187#Comment_81933187

So no reason to fill in a tax return then?

Pablolufc

https://forums.moneysavingexpert.com/discussion/comment/81933153#Comment_81933153

I was talking about this years tax return - I received a company car in May of last year. I did use my own car on the cash for cars scheme - and claimed 20% of the difference. As my salary was over £50k should I of claimed 40% or was the 20% relief correct?

Grumpy_chap

The way the claim for mileage at below the AMAP rate would work (assuming if claimed correctly) is that the benefit will be received at your appropriate marginal income tax rate.

It is a bit unclear, but I think you are saying that, prior to May 2025, you did not have a company car but instead received a monthly car allowance. Business mileage was still reimbursed at 14 pence per mile. If that is correct, then the following would have applied when you had the car allowance:

• car allowance treated as additional salary, subject to income tax and NI at appropriate marginal rates.
• business mileage paid at 14 pence per mile.
• difference between business mileage paid and AMAP rate is tax deductible.

Let's consider that the business mileage was 1,000 miles in the year. 14 pence per mile = £140.

AMAP rate for that level of mileage 45 pence per mile. For 1k miles = £450.

Difference £310.

For basic rate tax payer, this equates to a reduction in tax payable of £310 x 0.2 = £62

For higher rate tax payer, this equates to a reduction in tax payable of £310 x 0.4 = £124

For an individual close to the tax threshold, the reduction in tax payable might be between those two values if the threshold is crossed by this difference.

NOTE - The above assumes an individual in England, Wales or Northern Ireland. Different tax rates and bands in Scotland.

In the case of an individual with salary of £53k, it is probable that they do not suffer any higher rate income tax once factors such as pension contributions are considered.

Pablolufc

https://forums.moneysavingexpert.com/discussion/comment/81933302#Comment_81933302

Thanks - yes your correct, own car up until early May then company car. My tax code changed to reflect the BIK however my allowable expenses were still included in my code so I assume I will have some to pay back this year?