Car fuel Allowance ??????

AdrianHi

beachlou wrote: »

Perfect-many thanks.

Does anyone know how long approximately it takes to all go through (assuming everything goes without a hitch)?
Thanks

Not sure but will be doing it for my wife very soon.
You should have a nice little wind fall coming with 23,000 business miles.
When you fill out the P87 it asks you for the miles you've done and what your employer has paid you, they work out the rest.

You should also phone the tax office and ask them for forms to claim for any past years where you may be entitled to this tax releif. I'm not sure how many years you can go back, 5 or 6 at most I'm guessing. I think there is a fair bit of tax releif coming your way, but you might not get it all at once, you may find they reimburse some of it by adjusting your H2B's tax code so you get it back over the course of a year.

beachlou

AdrianHi wrote: »

Not sure but will be doing it for my wife very soon.
You should have a nice little wind fall coming with 23,000 business miles.
When you fill out the P87 it asks you for the miles you've done and what your employer has paid you, they work out the rest.

You should also phone the tax office and ask them for forms to claim for any past years where you may be entitled to this tax releif. I'm not sure how many years you can go back, 5 or 6 at most I'm guessing. I think there is a fair bit of tax releif coming your way, but you might not get it all at once, you may find they reimburse some of it by adjusting your H2B's tax code so you get it back over the course of a year.

Excellent, many thanks. I didn't realise you could back date it either, as he has 2 years worth of milage at about 23,000 a go. Fantastic!! Better start filling out the form. So glad I found this thread :T

Lynatali

Hi I am new to this and need help please re fuel allowance.

I have a company car and have done 18,702 business miles since last October to the end of May 08. My company pay me a measly 11p per mile. As diesel continues to go up on a weekly basis I contacted the tax office and have been sent a P87 form. I am unclear as to whether I can claim back the difference of the HMRC rates of 40p for first 10,000 miles than 25p thereafter. I have had conflicting advice and unsure what the answer is on this?

Can I claim anything back???? A present I am seriously out of pocket.

redux

No, the 40 pence allowance is for people being refunded for business use of their own car

On the taxation of company cars, you get taxed on the deemed value of benefit-in-kind.

Some people get free fuel as well, which is also taxed as a deemed lump sum value, but many find that rather high for their use, and paying the fuel themselves and claiming back the business cost is better for them.

Who pays for your car's tax insurance tyres servicing and repairs? If it's your employer, I doubt you'd be thought to be a lot out of pocket. I think you need to agree a new fuel rate with your employer, though 11 pence a mile would be 54 mpg so perhaps not so far away

AdrianHi

Lynatali wrote: »

Hi I am new to this and need help please re fuel allowance.

I have a company car and have done 18,702 business miles since last October to the end of May 08. My company pay me a measly 11p per mile. As diesel continues to go up on a weekly basis I contacted the tax office and have been sent a P87 form. I am unclear as to whether I can claim back the difference of the HMRC rates of 40p for first 10,000 miles than 25p thereafter. I have had conflicting advice and unsure what the answer is on this?

Can I claim anything back???? A present I am seriously out of pocket.

New rates apply tio you from 1 July 2008 here:
http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

This is what applies previous to this date:
http://www.hmrc.gov.uk/cars/advisory_fuel_archive.htm which is 11p per mile for a diesel up to 2000cc.
I think your employer is paying you all they can right now, watch for it going up from 1 July 2008 though.

I don't think you are "seriously" out of pocket (yet), for my 46mpg diesel fuelling it went past 11p per mile around February time. I would say fuelling a 46mpg diesel has already risen above 13p per mile now though

leehal

AdrianHi wrote: »

New rates apply tio you from 1 July 2008 here:
http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

This is what applies previous to this date:
http://www.hmrc.gov.uk/cars/advisory_fuel_archive.htm which is 11p per mile for a diesel up to 2000cc.
I think your employer is paying you all they can right now, watch for it going up from 1 July 2008 though.

I don't think you are "seriously" out of pocket (yet), for my 46mpg diesel fuelling it went past 11p per mile around February time. I would say fuelling a 46mpg diesel has already risen above 13p per mile now though

My understanding is that those rates are for guidance for companies in relation to charging compnay car users when they do private mileage in company cars or to give an indication of fuel costs per mile for their accounts purposes. They don't seem to relate to using your own car for business use.

Taken from the guidance notes :-

Use of advisory fuel rates

The advisory fuel rates (guidelines on fuel only mileage rates for company cars) were first published in January 2002. It has been possible to use them since then to negotiate dispensations for mileage payments for business travel in company cars.
They are intended to reflect actual average fuel costs at the time they are set. The aim is to save time for both employers and HMRC by setting out some figures that can be used in the majority of cases. They give employers more certainty about what the mileage rates that they choose to apply mean for tax and National Insurance contributions (NICs).
The rates only apply where employers:

• reimburse employees for business travel in their company cars, or
• require employees to repay the cost of fuel used for private travel.

The rates do not apply in any other circumstances. In particular, employees driving company cars are not entitled to use them to calculate a deduction if employers reimburse them at lower rates. Such calculations should continue to be based on actual costs incurred.

AdrianHi

leehal wrote: »

My understanding is that those rates are for guidance for companies in relation to charging compnay car users when they do private mileage in company cars

Only on the fuel they use if they also have all fuel paid for by the company. Company car drivers pay BIK (benefit In Kind) tax for the benefit of having the use of the company car for private use.

leehal wrote: »

or to give an indication of fuel costs per mile for their accounts purposes. They don't seem to relate to using your own car for business use.

Yes correct, there are different allowances for using your private car for business use. Those tax free expense allowances are 40p per mile first 10,000 miles then 25p thereafter. If your employer pays less than this you can claim tax relied on the difference using form P87.

I posted the link to this in the context of this situation:

leehal wrote: »

• reimburse employees for business travel in their company cars, or

where as a company car user you choose not to take a fuel card and have all your fuel paid (paying another hefty tax) but pay fuel yourself and reclaim fuel expense mileage allowance only from your employer.
Employees who do have a company fuel card may also choose to repay the cost of
fuel for private mileage using these rates.

rossc_84

Hi - I hope someone can help!!

I started a new job where I have to use my own car for business use. I currently have to pay for fuel myself and reclaim it at 13p per mile(I drive a 1.6 petrol). I have seen that I can reclaim some money from the inland revenue, however I am slightly confused as to the amount!! I do about 35000 business miles per year and I worked it out the benefit came out at £5700....how much of this do I actually get back? I am not on a higher tax bracket and get £200 per month car allowance also.

Any clarification on this would be a great help!

AdrianHi

rossc_84 wrote: »

Hi - I hope someone can help!!

I started a new job where I have to use my own car for business use. I currently have to pay for fuel myself and reclaim it at 13p per mile(I drive a 1.6 petrol). I have seen that I can reclaim some money from the inland revenue, however I am slightly confused as to the amount!! I do about 35000 business miles per year and I worked it out the benefit came out at £5700....how much of this do I actually get back? I am not on a higher tax bracket and get £200 per month car allowance also.

Any clarification on this would be a great help!

13p per mile is probably only just enough to cover fuel right now.
You definitely need to be filling out HMRC form P87 at the end of each tax year.
You should be able to receive tax and NI (I think, can anyone confirm this want to know myself?) relief on £5700 so should work out at about £1710 a year (approx. 20% PAYE and 10% NI), worst case £1140 (PAYE only) which you will have to wait to claim back.
Not exact figures but gives you an idea what you should get back.
If you consistently make this claim or you talk to your HMRC office in advance and tell them you will always be doing this business mileage they may change your tax code instead (happened to a past work colleague of mine) which means you receive the tax relief each month in the form a reduced tax payments - which means you get the money back straight away instead of having to wait until the end of the tax year plus a few months processing time for it.

tinkerbell84

^^ You can claim the tax, not NI.