Fuel Benefit

reddevilled

Just to avoid confusion iain means a P11d not a P60 (which is a summary of employment income and tax paid etc)

I thought that as of a couple of years ago, if a company paid within the approved mileage rates then no entry was required on form p11d, only the taxable amount goes in box 1.15 of the form. I have always read that to mean that if either you have been paid MORE than the approved rate OR there is an alement of private mileage this ges in the box.

Please do correct me if I'm wrong, that is just what I think

withabix

Corrected now, thanks!

withabix

reddevilled wrote:

Just to avoid confusion iain means a P11d not a P60 (which is a summary of employment income and tax paid etc)

I thought that as of a couple of years ago, if a company paid within the approved mileage rates then no entry was required on form p11d, only the taxable amount goes in box 1.15 of the form. I have always read that to mean that if either you have been paid MORE than the approved rate OR there is an alement of private mileage this ges in the box.

Please do correct me if I'm wrong, that is just what I think

But if no entry was made on the P11d then you wouldn't be able to claim tax relief on the difference between the amount per mile paid by your employer and the IRAMR rates of 40p and 25p/mile.

ctm_2

iainkirk wrote:

But if no entry was made on the P11d then you wouldn't be able to claim tax relief on the difference between the amount per mile paid by your employer and the IRAMR rates of 40p and 25p/mile.

Yes you would.

Many people do not have fuel benefit, and therefore no P11D, but get paid for business mileage by their employer and then claim releif on the difference between the amount they are paid and the AMAP (Approved Mileage Allowance Payments. Not called IRAMR any more) amount.

There seems to be confusion over AMAP, and fuel benefit here.

The fuel benefit is taxable, and is for the fuel provided/paid for by your employer that is used for private use of the car.

AMAP is the rate you are paid for using your own car for business mileage, and is seperate from the fuel benefit.

If you receive a tax return, then the figure for fuel benefit should go in box 1.17. If you receive more than the AMAP rate for mileage, then the excess amount is taxable, and should be entered at box 1.15.

If you want to claim releif on the difference between what your employer pays you and the AMAP rate then enter the difference between the two at box 1.32 to claim the releif.

Alternatively, if you are not dealt with under Self Assessment, then to claim releif you will need to ask for and complete a form P87.

reddevilled

ctm wrote:

Yes you would.

Many people do not have fuel benefit, and therefore no P11D, but get paid for business mileage by their employer and then claim releif on the difference between the amount they are paid and the AMAP (Approved Mileage Allowance Payments. Not called IRAMR any more) amount.

There seems to be confusion over AMAP, and fuel benefit here.

The fuel benefit is taxable, and is for the fuel provided/paid for by your employer that is used for private use of the car.

AMAP is the rate you are paid for using your own car for business mileage, and is seperate from the fuel benefit.

If you receive a tax return, then the figure for fuel benefit should go in box 1.17. If you receive more than the AMAP rate for mileage, then the excess amount is taxable, and should be entered at box 1.15.

If you want to claim releif on the difference between what your employer pays you and the AMAP rate then enter the difference between the two at box 1.32 to claim the releif.

Alternatively, if you are not dealt with under Self Assessment, then to claim releif you will need to ask for and complete a form P87.

Yes that is my understanding - I thought I was going mad there :mad:

wizzer

iainkirk wrote:

Some of the replies here are not correct.

If you receive private fuel, this will be taxed as a benefit. Basically speaking, the total amount spent on ALL fuel will bed taken off your tax code next year, as your employer will submit a P11d to the IR. The only way to recover tax relief on your business mileage is to submit a Tax Return.

To do this, you wil also need to keep a good log of all of your business mileage, as the money spent on business fuel will also be shown on your P11d as a taxalbe benefit.

You will be required to fill in a Tax Return.

Basically:

1) The money paid by your employer for ALL fuel will be advised to the IR on your P11d as a benefit (ie element of salary) in £s.
2) You claim tax relief on your BUSINESS mileage (ie all travel to temporary locations or business trips - if you work in a 'bricks and mortar' office, journeys to there from home are PRIVATE mileage). Subtract your private mileage from your business mileage and claim relief on the difference: Multiply the first 10,000 miles of this figure by 40p and the remainder by 25p and enter that figure as a BUSINESS EXPENSE. That will correctly increase your tax code by that figure, moving your 22% and 40% starting thresholds by the same figure, thus applying your tax relief correctly.
3) You will receive a tax rebate (or a positive code change) unless PRIVATE MILEAGE > BUSINESS MILEAGE, in which case you will receive a bill.
4) Your Tax Code for the next financial year will be set to match your Tax Return...and so it goes on.....

NB, if you are paid more than 40p/mile for the first 10,000 miles or more than 25p/mile for the rest, you will be taxed on the difference between what you are paid and 40p/25p. 40p and 25p are the IRAMR (Inland Revenue Approved Mileage Rates).

It doesn't matter if you drive a car with high or low fuel consumption, it's 40p and 25p irrespective of whether it's a Smart or a Bentley. Sorry!

So my employer provides a P11D which specifies the total value of fuel provided and my tax code is adjusted to reflect the value of this benefit in kind.

At the same time, I keep a log of all my business journeys. I claim 40p per mile for anything up to 10,000 miles, 25p a mile thereafter and the amount calculated as such is deducted from my tax bill?

ctm_2

wizzer wrote:

So my employer provides a P11D which specifies the total value of fuel provided and my tax code is adjusted to reflect the value of this benefit in kind.

At the same time, I keep a log of all my business journeys. I claim 40p per mile for anything up to 10,000 miles, 25p a mile thereafter and the amount calculated as such is deducted from my tax bill?

Yes. That's about it. Remember that if your employer pays you mileage then you can only claim the difference between what you get from your employer and the AMAP rates.

donnalou

I didn't wait for my employer to send me a P11D. I filled in a P87 on 6th April and recieved my tax relief in the form of a cheque a couple of months later.

ctm_2

donnalou wrote:

Just to confuse matters even more. If your employer doesn't provide you with a P11D. You have to fill in a P87 and then you'll get your tax relief in a cheque after about 6-8 weeks.

What???? That is wrong.

Your P11d details taxable benefits, like the fuel benefit. NOT the amount of mileage you are paid.

Even if you do get a P11D, then you will have to complete a P87 (Or SA Tax Return) to claim releif on mileage.

Again: P11D has NOTHING to do with payment for mileage or claiming releif... See my post above that explains it all.....