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    • willpatey
    • By willpatey 14th Mar 18, 9:08 AM
    • 5Posts
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    willpatey
    Claiming Business Mileage
    • #1
    • 14th Mar 18, 9:08 AM
    Claiming Business Mileage 14th Mar 18 at 9:08 AM
    I'm hoping someone can help advise on my current, very complicated, scenario regarding business mileage and claiming tax back on said mileage.

    I run my own car and use it for business use. I have a company credit card for which I can use to purchase fuel for my car. At the end of the month I complete an expenses report that details my business and personal mileage. My employer then charges me back my personal mileage at 12p per mile which is taken from my net salary.

    What I want to know is if I can claim tax relief on the business miles that I do? I understand about AMAP rates and 45p allowance but is that affected by the fact that my employer pays up front for my fuel then charges back my personal mileage?

    Any help would be greatly appreciated.

    Thanks in advance!
Page 1
    • purdyoaten2
    • By purdyoaten2 14th Mar 18, 11:17 AM
    • 855 Posts
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    purdyoaten2
    • #2
    • 14th Mar 18, 11:17 AM
    • #2
    • 14th Mar 18, 11:17 AM
    I have read this more than once and it seems to me that your employer is reimbursing you for all of your business mileage. It is an unusual way to do it but you could argue that you are still 'out' the depreciation and repairs costs. Can we establish exactly what rate you are being paid per business mile from the calculations?
    purdyoaten lost his password
    • Pennywise
    • By Pennywise 14th Mar 18, 11:33 AM
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    Pennywise
    • #3
    • 14th Mar 18, 11:33 AM
    • #3
    • 14th Mar 18, 11:33 AM
    Your employer is paying for fuel for business journeys, but you're getting nothing for the other costs, i.e. repairs, depreciation, road tax, insurance, etc.

    HMRC's mileage rate is 45p per mile, but that includes everything. What you need to do is deduct the official HMRC "fuel" rate for your car and claim back the difference. I..e. if the fuel rate was 12p, then you could claim 32p per mile for business journeys. You don't get the full 32p but you do get tax relief on the 32p, i.e. usually 20%, against your tax.
    • BoGoF
    • By BoGoF 14th Mar 18, 11:41 AM
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    BoGoF
    • #4
    • 14th Mar 18, 11:41 AM
    • #4
    • 14th Mar 18, 11:41 AM
    Does your employer report the business mileage spend on the company card as a taxable benefit on P11D
    • redpete
    • By redpete 14th Mar 18, 8:33 PM
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    redpete
    • #5
    • 14th Mar 18, 8:33 PM
    • #5
    • 14th Mar 18, 8:33 PM
    I dont think it is very complicated. The amount you get for your business mileage is the amount you spend on the fuel card less the 12p a mile for personal use. You can claim the difference between this and 45p a mile for business use against tax.

    Let's say 8000 miles total, buy 1000 of fuel on the card.
    3000 miles personal use gets you 360 leaving 640paid bythe company for the 5000 business miles.
    45p a mile for 5000 miles is 2250. You can claim tax relief on 2250 - 640 or 1610, so you would get back about 320 if you are a 20% tax payer.

    (Probably)
    loose does not rhyme with choose but lose does and is the word you meant to write.
    • willpatey
    • By willpatey 16th Mar 18, 2:24 PM
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    willpatey
    • #6
    • 16th Mar 18, 2:24 PM
    • #6
    • 16th Mar 18, 2:24 PM
    So as I understand it from the above there seems to be two options, see examples below:

    Example 1

    Minus the 11p per mile paid for personal mileage from the HMRC 45p:
    45p minus 11p = 34p
    Netted down (40% tax) = 13.6p
    Jan Business miles = 720
    Total Jan Claim = 97.92

    Example 2

    Total Fuel Cost less personal mileage cost divided by business mileage to get business mileage rate to deduct from HMRC 45p:
    Jan Total Fuel Cost (Total miles: 1501): 150.64
    Personal Mileage Pay Back (Personal miles: 781): 85.91
    Total Business Mile Cost (720 miles): 64.73
    Therefore business cost per mile is 8p
    HMRC 45p less 8p = 37p
    Netted down (40% tax) = 14.8p
    Total mileage claim for Jan = 14.8 x 720 = 106.56

    Any comments on either of these examples would be most appreciated.

    Thanks in advance.
    Last edited by willpatey; 16-03-2018 at 2:34 PM. Reason: incorrect figures
    • Dazed and confused
    • By Dazed and confused 16th Mar 18, 2:27 PM
    • 2,555 Posts
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    Dazed and confused
    • #7
    • 16th Mar 18, 2:27 PM
    • #7
    • 16th Mar 18, 2:27 PM
    You might want to rework example 1.

    My calculator has 45 - 11 as 34, not 33.
    • willpatey
    • By willpatey 16th Mar 18, 2:35 PM
    • 5 Posts
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    willpatey
    • #8
    • 16th Mar 18, 2:35 PM
    • #8
    • 16th Mar 18, 2:35 PM
    You might want to rework example 1.

    My calculator has 45 - 11 as 34, not 33.
    Originally posted by Dazed and confused
    Thanks! I was originally working off 12p and forgot to change the difference.
    • BoGoF
    • By BoGoF 16th Mar 18, 2:38 PM
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    BoGoF
    • #9
    • 16th Mar 18, 2:38 PM
    • #9
    • 16th Mar 18, 2:38 PM
    I think you are overcomplicating it.

    At the end of the tax year your employer should report the amount spent on the credit card minus what you have paid back as a taxable benefit on form P11d. Lets say this is 5000.

    Your mileage for the year is 15,000 so using HMRC 45/25 ppm per mile this gives tax relief due on 5750.

    Net effect is tax relief due on 750
    • willpatey
    • By willpatey 16th Mar 18, 2:47 PM
    • 5 Posts
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    willpatey
    I think you are overcomplicating it.

    At the end of the tax year your employer should report the amount spent on the credit card minus what you have paid back as a taxable benefit on form P11d. Lets say this is 5000.

    Your mileage for the year is 15,000 so using HMRC 45/25 ppm per mile this gives tax relief due on 5750.

    Net effect is tax relief due on 750
    Originally posted by BoGoF
    The problem is I am really talking hypothetically at the moment as I am currently in a company car so the above wouldn't show on my P11D yet. I'm moving into my own vehicle in April hence why I am looking into.
    • BoGoF
    • By BoGoF 16th Mar 18, 2:54 PM
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    BoGoF
    Keep it simple - dont be trying to convert the business fuel spend to some figure of mileage allowance to be deducted from the 45ppm. It won't work.
    • willpatey
    • By willpatey 16th Mar 18, 2:59 PM
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    willpatey
    Keep it simple - dont be trying to convert the business fuel spend to some figure of mileage allowance to be deducted from the 45ppm. It won't work.
    Originally posted by BoGoF
    I think part of the problem is that as I am paying my personal mileage back it wont ever show on my P11D as a taxable benefit.
    • BoGoF
    • By BoGoF 16th Mar 18, 3:07 PM
    • 3,117 Posts
    • 2,389 Thanks
    BoGoF
    I think part of the problem is that as I am paying my personal mileage back it wont ever show on my P11D as a taxable benefit.
    Originally posted by willpatey
    Your employer is obliged to report it even it is for a business purpose.
    • David Allan
    • By David Allan 21st Mar 18, 1:38 PM
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    David Allan
    On a similar note can someone please advise.

    Until recently I used my car for business use and was reimbursed at 11p/mile, plus I was also paid a 6k car allowance which was taxed at 40% in the normal manner with my monthly salary.
    I deduct my private miles via monthly mileage log when making mileage claim thus no benifit in kind applicable.
    Over the last 3 years I have claimed back the tax relief on the difference between what paid by my employer and the HMRC mileage rates via self assessment, which has been around 2k per year.

    I have recently changed jobs and again use my car for business miles, with car allowance also paid.
    The only difference is that my employer will provide a fuel card for business use only again.
    I have to complete a monthly mileage log with my private miles deducted at a nominal rate thus no benefit in kind implications.
    Given that I am not paying for my fuel directly and reclaiming from my employer as they are providing fuel card can I still claim the tax relief on the business miles in the normal manner.
    In effect it is really the same thing.
    I was simply going to use the cost of the business fuel within the self assessment here, but I have been given conflicting information on this.

    Can someone please advise on this.
    Thanks

    Can
    • redpete
    • By redpete 22nd Mar 18, 7:58 AM
    • 4,238 Posts
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    redpete
    my employer will provide a fuel card for business use only again.
    I have to complete a monthly mileage log with my private miles deducted at a nominal rate thus no benefit in kind implications.
    Originally posted by David Allan
    not sure what this means - do you pay the company a nominal amount per mile back to your employer for the personal miles?
    Given that I am not paying for my fuel directly and reclaiming from my employer as they are providing fuel card can I still claim the tax relief on the business miles in the normal manner.
    In effect it is really the same thing.
    You get a tank of petrol provided by your employer. The value of this is the amount charged on the fuel card less whatever you pay back for personal miles. You can claim tax relief on the difference between this value and 45/25p per business mile.
    loose does not rhyme with choose but lose does and is the word you meant to write.
    • David Allan
    • By David Allan 22nd Mar 18, 8:43 AM
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    David Allan
    My employer provides a fuel card for business miles only.
    My employer deducts the private miles entered in the monthly mileage log from my monthly wages at 11p/mile.

    So my intention is to deduct the cost of the private miles from the cost of the fuel and enter this net cost within the self assessment.
    I will then claim back the tax relief on the difference applying the HMRC mileage rates.

    Does this sound right?
    Cheers
    • redpete
    • By redpete 22nd Mar 18, 8:22 PM
    • 4,238 Posts
    • 3,774 Thanks
    redpete
    Does this sound right?
    Cheers
    Originally posted by David Allan
    Seems correct
    loose does not rhyme with choose but lose does and is the word you meant to write.
    • 00ec25
    • By 00ec25 22nd Mar 18, 9:25 PM
    • 6,373 Posts
    • 5,886 Thanks
    00ec25
    My employer provides a fuel card for business miles only.
    My employer deducts the private miles entered in the monthly mileage log from my monthly wages at 11p/mile.
    Originally posted by David Allan
    not how i would word it, your employer provides a fuel card which pays for all fuel used in your car

    at the end of the month from that total cost the employer claims back, via payroll deduction, a monetary amount equal to private miles x 11ppm. That leaves a net total cost of business fuel paid by the employer

    So my intention is to deduct the cost of the private miles from the cost of the fuel and enter this net cost within the self assessment.
    I will then claim back the tax relief on the difference applying the HMRC mileage rates.

    Does this sound right?
    Cheers
    Originally posted by David Allan
    assuming you know the total cost of the fuel paid on the card that month then yes, the net figure you mention would be the one to use against business mileage @ 45ppm and the monetary difference between those 2 totals is what you claim as a cost on your tax relief claim
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