Business Miles Fuel allowance

[SC]

Hi, I currently receive a car allowance from the company I work for to fund a car for business use. This car is leased in my name as a personal lease and I receive an allownace of 10p per mile to cover fuel costs for business miles. I have recently been told that I could make a tax claim to top this up to 40p for the first 10,000 miles and 25p for each mile after. Is this correct and if so how do I go about it? Is this back datable (and if so for how many years) and does it also apply to company owned cars as my husband has a company car but ony receives 12p per business mile. Thanks

[King_Maker]

Briefly :

1. Yes, you can claim the balance from HMRC as a tax relief. This can be done via form P87 or your Tax Return.

2. Six years.

3. It does not apply to company cars.

[SC]

Thanks - I do get a monthly cash allowance from the company of approx £400 towards the cost of a car, but it is a privately leased car. Do I still qualify for the tax relief?

[al_eebee]

The allowance is presumably taxed under PAYE as part of your salary.

That being so it does not affect any claim for mileage.

You will however have to deduct the 10p/mile you receive for fuel from the claim calculated on the 40p/25p rate

[nic283]

Hi there, I've recently claimed back mileage expenses as I only get 14p back from the company per mile. I have a car allowance also and the vehicle is mine. I received a letter from HMRC saying that my tax code has changed. Is this the means I am reimbursed? It says I have to inform them if the information is correct or not. My code changed from 522L to 525L (I didn't do that many miles!). Does this sound correct as I am clueless about the process? :os I assume I just claim the remainder of my mileage expenses back from HMRC every year?

Thanks

[King_Maker]

nic283,

Your Code has increased £30, which means maximum extra "cash" of £12.00

So you need to review it again.

[nic283]

I did only claim £31 back as I didn't do that many miles. Sorry for being thick but what do I need to do?

Any help is appreciated.

[King_Maker]

nic283,

Oh, I thought it was a mistake.

It seems that HMRC have given you the £31 tax relief via that Code change.

Note, the claim is only in terms of tax relief - NOT the £31 itself. Therefore, if your tax rate is 40%, it is worth £12 to you, or £6.60 at 22%. This is why it is better for the employer to pay a higher (tax free) mileage allowance in the first place.

[nic283]

I see. What to do with my extra £6.60! Thanks King_Maker

[sakalk]

Hi,
I get car allowance and all fuel paid (fuel card). I use my personal car for busuness use. If I do 10,000 buiness miles and 10,000 pivate miles, how much can i claim back? Monthly my employer pay about £500 for fuel for both personal and private use.

Thanks
sa