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  • FIRST POST
    • scottkeene
    • By scottkeene 13th Dec 16, 1:23 PM
    • 5Posts
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    scottkeene
    Fuel Tax Relief
    • #1
    • 13th Dec 16, 1:23 PM
    Fuel Tax Relief 13th Dec 16 at 1:23 PM
    Hi,

    I am an employee for a company and have allowance which I use to pay for a company car. When I go on trips with work I claim the 9p/10p etc mile for expenses.

    But, can I claim the tax relief as per the gov.uk website which it refers to (sorry, cannot add link under my new account) for the difference? If so, what is the higher limit (is it my income tax amount) and how far back can I go? I assume I'll need to do it via self-assessment?

    Thanks in advance.
Page 1
    • singhini
    • By singhini 13th Dec 16, 1:46 PM
    • 335 Posts
    • 199 Thanks
    singhini
    • #2
    • 13th Dec 16, 1:46 PM
    • #2
    • 13th Dec 16, 1:46 PM
    when you say you get a car allowance I'm assuming this is paid into your salary monthly and you use this money to provide your own car which you pay everything for i.e. you pay for fuel, servicing, car insurance, road tax etc....

    And at the end of each month your employer pays you 10p per mile.

    If I have got the situation correct, yes you can claim tax relief on business miles.
    This is how I understand it
    HMRC is 45p for the first 10,000 miles and then 25p thereafter.

    So lets say you did 21,000 miles in a year, that would mean
    10,000 x 45p = £4,500
    11,000 x 25p = £2,750
    TOTAL = £7,250 Less £2,100 (this is 21,000 x 10p paid by your company) = £5,150

    lets say you are a 20% tax payer, so 20% of £5,150 = £1,030


    You might not need to do a full self-assessment, you might be able to just fill in a p87 form https://www.aber.ac.uk/en/media/departmental/finance/pdf/p87-mileage-rate-tax-relief.pdf

    If the link doesn't work, try googling p87 refund form

    PS - I'm no expert, you might want to wait for someone who is
    • scottkeene
    • By scottkeene 13th Dec 16, 2:11 PM
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    scottkeene
    • #3
    • 13th Dec 16, 2:11 PM
    • #3
    • 13th Dec 16, 2:11 PM
    Hello,

    Thanks for the reply. Nearly, except its a proper Lease car. So tax, MOT, service etc is all covered under the company car lease agreement.

    Same apply?
    • singhini
    • By singhini 13th Dec 16, 2:27 PM
    • 335 Posts
    • 199 Thanks
    singhini
    • #4
    • 13th Dec 16, 2:27 PM
    • #4
    • 13th Dec 16, 2:27 PM
    I'm not sure, I can't see why your being paid 10p per mile if its a company car which you don't pay anything for.

    Infact I would think its the opposite; that the car would be a benefit in kind and appear on your PAYE tax code (so you pay company car tax). Also you would be paying your company for using the car at evenings ad weekends i.e. private mileage.

    You seem to have access to a car that belongs to your company and you pay none of the running costs but you are wanting payment for driving it.

    Best to wait for a more knowledgeable person than me, sorry
    • singhini
    • By singhini 13th Dec 16, 2:50 PM
    • 335 Posts
    • 199 Thanks
    singhini
    • #5
    • 13th Dec 16, 2:50 PM
    • #5
    • 13th Dec 16, 2:50 PM
    Ah could there be a third way I haven't thought about. Could your company be paying you an allowance into your salary which automatically gets taken back out to pay for a car which is being leased (in your name). Thus the car is not a company car but a car that you are leasing (the lease also covers insurance, servicing, road tax etc.....).

    Now in theory you are driving a car you are leasing and nothing to do with the company and your employer pays you 10p mile (the employer may have helped you set up the car lease but on paper its nothing to do with them as its a paper exercise, the lease is in your name). Thus you would not have company car tax to pay on your PAYE coding.

    So in theory you might be able to do what I said in post #2

    But it could get more complicated depending on who pays for the fuel?

    If you pay for the fuel then that's fine. if your company pays for the fuel then I'm guessing you would take that off the amount being claimed. So in post #2 where I have put £5,150 you might have to take off cost of fuel (lets say fuel cost you £3,000 all year), then you would get 20% tax relief on £5,150 - £3,000 = £2,150 x 20% = £430

    I'm really not sure, don't rely on me

    Have you spoken to your fleet manager or the leasing company about what you can do?
    • Caz3121
    • By Caz3121 13th Dec 16, 3:05 PM
    • 11,190 Posts
    • 7,342 Thanks
    Caz3121
    • #6
    • 13th Dec 16, 3:05 PM
    • #6
    • 13th Dec 16, 3:05 PM
    can I claim the tax relief as per the gov.uk website which it refers to.
    Originally posted by scottkeene
    the tax relief available to claim refers to you using your own personal car. If a company car whether you have a BIK deduction there is no additional to be claimed as the extra is for wear and tear, insurance, tyres etc for your personally owned vehicle which do not apply if you have a company car

    You need to clarify if this is a company car or a personal car
    • Darksparkle
    • By Darksparkle 13th Dec 16, 3:50 PM
    • 5,053 Posts
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    Darksparkle
    • #7
    • 13th Dec 16, 3:50 PM
    • #7
    • 13th Dec 16, 3:50 PM
    Who is paying for the fuel?

    These are the advisery fuel rates for company cars - https://www.gov.uk/government/publications/advisory-fuel-rates/advisory-fuel-rates-from-1-march-2016
    • lisa110rry
    • By lisa110rry 13th Dec 16, 4:21 PM
    • 1,739 Posts
    • 3,033 Thanks
    lisa110rry
    • #8
    • 13th Dec 16, 4:21 PM
    • #8
    • 13th Dec 16, 4:21 PM
    No, there was a new set of rates published 1 December 2016, although the old rates can be allowed to continue for one month.
    “And all shall be well. And all shall be well. And all manner of things shall be exceeding well.”
    !!!8213; Julian of Norwich
    In other words, Don't Panic!
    • scottkeene
    • By scottkeene 13th Dec 16, 4:26 PM
    • 5 Posts
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    scottkeene
    • #9
    • 13th Dec 16, 4:26 PM
    • #9
    • 13th Dec 16, 4:26 PM
    Hi,

    Its classed as a company car. I get an allowance in my benefits which I use to pay (before PAYE and NI) for a lease car through the company scheme (so salary sacrifice). All costs are covered except day to day running (fuel etc). I pay for fuel, but claim expenses for work related business trips (commute to client site) when the mileage is over my normal workday commute to my home office.

    I then claim back once or twice a month that expense at the rate of 9p a mile (at the current time).

    Does that clarify?
    • MichelleUK
    • By MichelleUK 13th Dec 16, 4:36 PM
    • 349 Posts
    • 219 Thanks
    MichelleUK
    Deleted double post.
    Last edited by MichelleUK; 13-12-2016 at 4:39 PM.
    • MichelleUK
    • By MichelleUK 13th Dec 16, 4:38 PM
    • 349 Posts
    • 219 Thanks
    MichelleUK
    Hi,

    Its classed as a company car. I get an allowance in my benefits which I use to pay (before PAYE and NI) for a lease car through the company scheme (so salary sacrifice). All costs are covered except day to day running (fuel etc). I pay for fuel, but claim expenses for work related business trips (commute to client site) when the mileage is over my normal workday commute to my home office.

    I then claim back once or twice a month that expense at the rate of 9p a mile (at the current time).

    Does that clarify?
    Originally posted by scottkeene
    See the link that Darksparkle has given, they are fuel only rates on a company provided car (which is what your salary sacrifice car is), so it looks as if you probably have nothing to claim.
    • Darksparkle
    • By Darksparkle 13th Dec 16, 5:05 PM
    • 5,053 Posts
    • 3,290 Thanks
    Darksparkle
    No, there was a new set of rates published 1 December 2016, although the old rates can be allowed to continue for one month.
    Originally posted by lisa110rry
    Did you open the link?
    • scottkeene
    • By scottkeene 15th Dec 16, 12:33 PM
    • 5 Posts
    • 0 Thanks
    scottkeene
    This is the text from the link.......

    Using a company car for business

    You can claim tax relief on the money you!!!8217;ve spent on fuel or electricity for business trips in your company car. Keep records to show the actual cost of the fuel or electricity you!!!8217;ve bought or used.
    If your employer reimburses only some of the money, you can claim relief on the difference.


    Link below from the gov website (cannot post a link on here for some reason).


    tax-relief-for-employees/business-mileage-fuel-costs
    • Darksparkle
    • By Darksparkle 15th Dec 16, 1:42 PM
    • 5,053 Posts
    • 3,290 Thanks
    Darksparkle
    This is the text from the link.......

    Using a company car for business

    You can claim tax relief on the money you!!!8217;ve spent on fuel or electricity for business trips in your company car. Keep records to show the actual cost of the fuel or electricity you!!!8217;ve bought or used.
    If your employer reimburses only some of the money, you can claim relief on the difference.


    Link below from the gov website (cannot post a link on here for some reason).


    tax-relief-for-employees/business-mileage-fuel-costs
    Originally posted by scottkeene
    So pays for fuel? You? Or the company?

    Is it diesel or petrol? What's the engine size?
    • scottkeene
    • By scottkeene 16th Dec 16, 3:52 PM
    • 5 Posts
    • 0 Thanks
    scottkeene
    Me. And I just claim back the mileage of business trips (twice or three times a week) to client sites. Current rate is 9p a mile I think.

    Diesel - 1.6.
    • dori2o
    • By dori2o 18th Dec 16, 12:13 PM
    • 7,598 Posts
    • 12,726 Thanks
    dori2o
    As per the link Darksparkle has given, if its a company car, diesel, 1600cc or less, and you are already being paid 9p per business mile by your employer then there is no additional relief due.
    To equate judgement and wisdom with occupation is at best . . . insulting.
    • Jiames1949
    • By Jiames1949 9th Jun 17, 5:58 PM
    • 1 Posts
    • 0 Thanks
    Jiames1949
    Can anyone help me understand?
    I have waded through websites and this forum and I'm still lost.
    My wife is a carer and uses her own car for work travelling to peoples homes. She is paid nothing by her company for using her car. It seems if you claim 45p per mile against tax that this is only worth 20% of 45p i.e. 9p. Can this be right? It's less than it costs in petrol never mind servicing, tyres, depreciation etc. She does about 5000 - 6000 miles a year. Please help as it's not the best paid job without losing money on fuel as well.
    • Dazed and confused
    • By Dazed and confused 9th Jun 17, 6:19 PM
    • 2,558 Posts
    • 1,228 Thanks
    Dazed and confused
    And don't forget you only get a refund of tax actually paid so if it's "not the best paid job" or she's part time then is she actually paying any tax? If not then there isn't going to be any tax refund due.
    • Goodform
    • By Goodform 1st Feb 18, 1:53 AM
    • 3 Posts
    • 0 Thanks
    Goodform
    Hi, we have a slight variation of this issue that is causing confusion when assessing what tax relief we can claim. Grateful for any advice/comments:
    My wife leases a vehicle via her employer (NHS) and pays a monthly discounted cost for this out of her wage.
    Her P11D shows; the "List price of the car", the "Amount paid by employee for private use of the car" and "Total cash equivalent of all cars made available in 2016 to 2017". No other figures are presented on the form.
    The lease contract covers; maintenance costs, road tax and servicing, but NOT insurance, which she has to purchase at her own cost.
    She uses the car mainly for business purposes (community nurse visiting patients etc), but it is also used privately. She is given a business mileage allowance of 10p a mile.
    Given the circumstances above - is her car (for the purposes of claiming business mileage tax relief) considered a company vehicle? or a private vehicle? i.e. as she has to purchase her own insurance, can she claim tax relief on the approved mileage rate of 45p (minus the 10p her employer pays)?
    Last edited by Goodform; 01-02-2018 at 1:57 AM.
    • Tom99
    • By Tom99 1st Feb 18, 2:13 AM
    • 2,070 Posts
    • 1,393 Thanks
    Tom99
    Can anyone help me understand?
    I have waded through websites and this forum and I'm still lost.
    My wife is a carer and uses her own car for work travelling to peoples homes. She is paid nothing by her company for using her car. It seems if you claim 45p per mile against tax that this is only worth 20% of 45p i.e. 9p. Can this be right? It's less than it costs in petrol never mind servicing, tyres, depreciation etc. She does about 5000 - 6000 miles a year. Please help as it's not the best paid job without losing money on fuel as well.
    Originally posted by Jiames1949
    Its up to your wife's employer to pay her from using her own car. Up to 45p a mile will be tax free.
    Since your wife gets 0p per mile its assumed the mileage allowance is part of her basic salary hence the tax relief on 45p.
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