Mileage allowance on Company Car

[madeforever]

My son has a company car which he also uses for personal use and therefore pays the full amount of taxation benefit per month. The company allow him 19p per mile for company mileage. Can he claim the tax on the difference to 40p per mile?

[robbob]

Hi made

The 40p allowance is only for personal car used for business mileage - this covers all the car expenses purchase/repairs/fuel etc.

So he will not be able to claim the difference.

Im not sure what the 19p he is paid is for - does he receive this tax free? is this to cover business use of petrol that he pays for out of pocket? if this is the case he should check there is no car fuel benefit charge if he is only provided with business use re fuel.

[Daniya]

Rob:

From the info from Madeover

19p/mile is tax free and there will be no Car fuel benfit charge.

Rana

[Simon Sweetman]

Surely not ? If this is a company car (amd presumably running costs except fuel are paid by the employer) then what is the 19p per mile supposed to pay for ?

[Daniya]

My understanding of the above is:

1) Co. provides a co car and the employee pays the relevant benefit on it.

2) Employer pays the employee 19p/ mile for Business mileage ONLY on fuel. This payment is made when the employee submits his expenses.
There will be NO benefit as to fuel.
Benefit only arises if the employer had paid all the fuel cost including the private travel.

Rana

[King_Maker]

19p/mile is the old HMRC Advisory rate up to 30 June 2008 for cars over 2000cc.

Unless this is a coincidence, Rana is correct.