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Where Taxpayers and Advisers Meet

Fuel card and Mileage Allowance Relief for a private car

Tykey
Posts:2
Joined:Mon May 23, 2016 3:55 pm
Fuel card and Mileage Allowance Relief for a private car

Postby Tykey » Mon May 23, 2016 4:39 pm

Good afternoon, I hope someone can help me.

I have spent hours trawling forums and the gov.uk website but I cannot seem to find an answer to my own personal situation.

I joined a new company last year, for which I do some business travelling. I use my own private car, and I understand that this usually means I can claim Mileage Allowance Relief. This is where it gets complicated though.

I joined the company in May 2015, and in December 2015 I was given a fuel card. Until that point I received no reimbursement at all (for fuel, wear & tear, etc.). Now I have a fuel card, private and business fuel goes on this, and I pay back private mileage through payroll each month at the HMRC recommended rate. Does this affect claiming the MAR, as the company are now effectively paying my fuel for business use? Or is there no change, because I am paying my own private fuel still, and therefore there is no personal benefit. I still get no reimbursement for the wear & tear aspect.

Here are the real-world numbers that I hope will help?

May 2015 - November 2015
Business miles driven: 3,703
Amount reimbursed by employer: £0
Therefore I can claim tax relief on 3,703 miles (3,703 x 45p = £1,666.35) 40% taxpayer so claim is £1,666.35 x 40% = £666.54.

So far, so good (I think). Until the fuel card comes along...

December 2015 - March 2016
Business miles driven: 681
Amount reimbursed by employer: ??

I hope someone is able to unravel this situation for me, as I'm now utterly confused by it. Thanks in advance.

bd6759
Posts:4270
Joined:Sat Feb 01, 2014 3:26 pm

Re: Fuel card and Mileage Allowance Relief for a private car

Postby bd6759 » Mon May 23, 2016 6:39 pm

Look at in from a tax year.

May - March. Miles 4384. @ 45p = 1972.80

Deduct from this the amount of fuel paid for by your employer. Your employer will tell you this.

The net amount is the expense you can cliam.

Tykey
Posts:2
Joined:Mon May 23, 2016 3:55 pm

Re: Fuel card and Mileage Allowance Relief for a private car

Postby Tykey » Tue May 24, 2016 6:58 pm

Thank you! When you put it like that, it all seems so simple. It was the fact that I had a fuel card for some of it but not the rest that was confusing me.

I presume my employer will tell me the correct amount on a P11D? Does that need to be requested or do I automatically get one?

Many thanks for your help.


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