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Posted Sat, 03 Jul 2021 13:02:04 GMT by Dixie Deans
In my job I use my own car to visit client premises over the whole of my local region (about 1-2000 miles per month) which is quite large. I receive £3000 per month Car Allowance from my company. I also claim the monthly Advisory fuel rate for each month. Can I claim the difference between the Advisory Rate and the Approved mileage and fuel rate, vis-a-vis the Advisory rate at present is 13p and the Approved mileage rate is 45p? Many thanks
Posted Wed, 07 Jul 2021 11:34:39 GMT by HMRC Admin 26
Hi,

The advisory rate is for company cars only.

If you use your own car then the mileage rates are 45p for the first 10,000 miles and then 25p per mile thereafter.
At the end of the tax year you would calculate the total that you can claim based on allowable business miles x the 45p/25p.

You would then compare that to the payments made to you by your employer, and if there is a shortfall then you can claim the shortfall amount.

Thank you.
Posted Wed, 07 Jul 2021 17:55:40 GMT by Dixie Deans
Thank you for all that. N.B. Of course my £3000 per month should read per annum. When I first joined this company on the initial contract I received the full rate of 45p per mile and no car allowance. After being taken onboard full-time I then received the £3000 allowance and the fuel rate that I receive is now based on the Advisory Rate on a monthly basis. All of my team are on the same deal. Does that make this deal unusual or does the £3000 allowance make any other shortfalls null and void? Your help in this matter is much appreciated.
Posted Fri, 09 Jul 2021 09:14:07 GMT by HMRC Admin 9
Hi, 

HMRC do not get involved in the agreement between an employer and employee regarding the rate of reimbursement for business mileage.

However, HMRC do set out the limit of tax free reimbursement.

You can find the employer guidance here:

Expenses and benefits: business travel mileage for employees' own vehicles

Thank you. 
Posted Thu, 29 Jul 2021 15:14:23 GMT by mmx
I will be receiving a company electric car shortly. The company policy has changed & I am only reimbursed for business mileage rather than using a fuel card. The Advisory fuel rates for electric company cars is currently 4p, however as some of my trips go beyond the range of the car & I will be forced to use public charging stations on motorways. The cost of using these is well in excess of the 4p/mile rate & I will have to cover this cost as the company strictly use the Advisory fuel rate. "Business Mileage will be reimbursed at the Advisory Electric Rate (AER)." Am I able to claim this personal loss back through my tax return?
Posted Tue, 03 Aug 2021 08:39:20 GMT by HMRC Admin 17

Hi,
 
Yes these would be allowable expenses.

Please see futher guidance regarding toll charges as allowable expenses:

Employment Income Manual  .

Thank you.

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