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Where Taxpayers and Advisers Meet

Private miles and the HMRC

Posts: 5
Joined: Tue Jan 02, 2018 5:39 pm

Private miles and the HMRC

Postby JackPez » Wed Apr 18, 2018 9:53 am

Hi, i would be very grateful if someone could offer me some advice.

I currently work for a company who provide a company car and fuel card. The amount of tax we pay for the fuel card is huge compared to the amount of private miles the guys are doing. I approached the company to see if we could keep the fuel cards but repay the company for our private mileage, so we are no longer liable for the tax on the fuel bik (plus i believe they will benefit as they will save on the National insurance contribution on the fuel)

I was told by the company its not as simple as us just informing them, for example I've done 500 private miles this month, however speaking with other people that is what they do.

So my question is, how interested are the HMRC regarding this issue. If we got audited, is a record of what we told the company plus proof of payment sufficient, or would they require more information.


Posts: 46
Joined: Tue Jan 31, 2017 10:41 am
Location: NE Scotland

Re: Private miles and the HMRC

Postby greybags1 » Wed Apr 18, 2018 3:15 pm

To avoid the fuel benefit you need to reimburse the employer the whole of the expense incurred in providing private fuel. So unless every single mile is tracked trying to prove to HMRC you have reimbursed the whole cost is near impossible. Personally I think it would be best to get rid of the fuel cards and for employees with company cars to be reimbursed for fuel on business miles only.

Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Private miles and the HMRC

Postby GlobalTaxAdviser » Wed Apr 18, 2018 3:16 pm


Yes you can pay the private element based on advisory fuel rates . My clients use a very good app to keep tabs of business and personal mileage.

Kind Regards


Posts: 5
Joined: Tue Jan 02, 2018 5:39 pm

Re: Private miles and the HMRC

Postby JackPez » Thu Apr 19, 2018 8:17 pm

Thanks both, I appreciate your replies.
I've found a company called mileage count, you plug a USB device into the car and it records journeys, you then separate business and private.

Do you happen to know what app they use ?

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