Private Car with Car Allowance and Fuel Card

[damien4596]

Good afternoon,

I am new, and probably asking the question that has been asked a thousand times before so please forgive me.

I have a car allowance paid by my employee which I pay tax on every month (as if it was my salary)

I have a fuel card which I used for both business and private mileage - My company do not stop me anything for this.

In my P11D the allocation was a benefit in kind of 1495.91 GBP - Which is the amount I have spent on fuel.

I have now received a tax bill for 800.00 GBP (the tax on this amount at 40% roughly)

Of course 90% of the 1495.91 was actually spent on business mileage (I have a VW Camper that I drive at the weekend and also my wifes car) therefore I should not be paying the tax on the full amount.

I have read a lot of threads saying that I should use the 45p per mile calculation?

For example:

I have done 9867 Business mileage @ 45p per mile = 4440.15 GBP
I have spent = 1495.91 GBP on fuel

4440.15 minus 1495.91 = 2944.24 GBP (the difference)

Would that mean that HMRC owe me the tax on the difference?

How do I go about claiming to ensure that I don't pay the additional tax.

Any help would be appreciated, I have spoken to HMRC and my employer but it looks like im talking rubbish

Thank you

Damien

[bd6759]

You seem to have explained it ok.

Tell HMRC you want to claim tax relief on your business mileage: 9867 @ 45p per mile = 4440.15. Ignore the car allowance. It is just additional salary and is taxed as such. It is not relevant and will confuse them if you bring it up. The pertinent facts are the £1495 you receive that has not been taxed and the £4440 expense that you incur.

They should amend your calculation for last year, and give you a new tax code for this year. The calculation and the tax code should show the £1495 as income and the £4440 as an expense,

[sammer56]

HI

I know this is an old post but is exactly the issue I'm trying to resolve at the moment - I drive my own car but have a company fuel card for all fuel.

I have a fuel card 'bill' of £1978 showing on my p11d - but that includes both private and business mileage. Should this only include the cost for the private mileage element, as otherwise I'm paying benefit on my business mileage? My company only record business mileage so they wouldn't be able to do the split, unless they said they'd pay a set figure per mile out of that bill, or I said to them I have x business miles and y private miles.

I understand that I can also claim the difference between what I've been paid for business mileage and the HMRC rates, but these figures will be skewed because the £1978 that I'm going to offset against the HMRC rates includes private mileage as well.

Previously I've made a contribution for private mileage so the fuel card has not counted as benefit in kind because I've covered the benefit part of it.

[bd6759]

It’s not skewed. It’s simple arithmetic.

If it were possible to identify and take out the cost of private miles you would pay tax on that and deduct the balance from the allowable claim. The result would be exactly the same.

[sammer56]

Hi

Thanks for the response but I'm even more confused

At the moment I'm being charged benefit on business miles as well as my private miles, and I'm claiming back the full amount paid out (inc. private miles) but only getting the additional tax on my business miles - so in effect I'm worse off on both counts?! I'm paying extra tax for the Benefit because it includes my business miles and claiming back less because part of the money I'm offsetting against my business miles was actually paying for my private miles, so the difference between what I got paid and the HMRC 45/25p rates is smaller.

Am I being an idiot and misunderstanding this? (please tell me if I am)

[bd6759]

I understand now.

If your employer pays for £1000 worth if fuel, you will pay tax on all of that.

If you have travelled 5000 business miles you can claim 45p per mile for those miles. There is no netting off because the fuel payment has been taxed.