Mileage tax relief if company provide fuel card on personal vehicle

Hi I use my own vehicle for business. My company provide a fuel card and then charge me 15p per mile currently for my personal miles. Can I claim tax relief on the miles I do for business? Currently do 12500 business miles and 5000 personal? Thanks

Hi,
 

You can't claim for business miles if a fuel card is provided.

Thank you.

Even if I pay for my own personal miles? What about the wear and tear element of my vehicle, can I claim tax relief on that?

Hi,
 

You can claim using the approved rates here for the business miles, if the employer does not provide a Mileage Allowance. I apologise I misread your original question. See Link: Claim tax relief for your job expenses   .

Thank you.
 

Hello, We are a limited company and pay our employees mileage, 25p in the mile. We would like to increase it but can we get any tax relief or reimbursement for this? Thank you, 

Hi,
 

Mileage rates are 45p up to 10,000 miles and 25p for mileage which exceeds 10,000 miles. You must use these rates to calculate the approved amounts of payments to your employees. If you make payments that exceed the approved amounts then you must: • report the excess payments on form P11D • add anything above the ‘approved amount’ to the employee’s pay, and deduct and pay tax as normal Please see the guidance on the gov.uk website at: Expenses and benefits: business travel mileage for employees' own vehicles   . The company’s employee costs, which comprise the gross wages and employer’s NICs, are tax deductible expenses for corporation tax purposes. Thank you.

Hi, please can you clarify. You are saying you cannot claim for business miles done in your private vehicle from your employer if a fuel card is provided even if you keep an accurate log and repay your private mileage? How do we compensate for wear and tear maintenance and depreciation? Many thanks

Hi Finnianlister,

This was the original answer to your question:  ""Mileage rates are 45p up to 10,000 miles and 25p for mileage which exceeds 10,000 miles".
You must use these rates to calculate the approved amounts of payments to your employees.
If you make payments that exceed the approved amounts then you must:
•    report the excess payments on form P11D
•    add anything above the ‘approved amount’ to the employee’s pay, and deduct and pay tax as normal
Please see the guidance on the gov.uk website at:

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

The company’s employee costs, which comprise the gross wages and employer’s NICs, are tax deductible expenses for corporation tax purposes"".
   
The mileage rates that can be paid include allowances for wear and tear, maintenance and depreciation. 
If you pay above that rate, tax must be deducted and a P11D completed.  
If you don't pay the approved rates, then you must keep a record of business mileage and also apportion running costs according to the business/private use of the vehicle and report this on the P11D. 
The employee can claim expenses incurred wholly, exclusively and necessarily in the course of their duties.
For more information about PAYE requirements, please contact the PAYE team.  
Details are on the GOV.UK website.  The helpline is 0300 200 3200.

Thank you.
 

Can I get clarification for company car please. I have been provided a company car and a fuel card and I’m being charged the excess fuel costs over the 14p per mile. Even though I declare personal miles separately. Is this correct or am I being incorrectly charged?

Hi Welshman,

Please see guidance here re fuel benefit charges:  
Taxable fuel provided for company cars and vans (480: Chapter 13)
Your employer will calculate the taxable benefit and forward to HMRC on a P11D form at the end of the tax year.

​​​​​​​Thank you.

Hi, I wanting clarification on what expenses I can claim for business miles. I own my own private car (I get paid a car allowance through my monthly salary from my employer) and along with that I am provided with a fuel card for purchasing all of my fuel with. I do not have to repay any of the costs of the fuel and as such this gets reported on my P11d as a taxable benefit. My question relates to business miles carried out in my car. I am under the impression that I can claim tax relief at the approved rates (45p/mile up to 10k miles, then 25p/mile after that) for all business miles I carry out in my car? And this is claimed through this link: https://www.gov.uk/tax-relief-for-employees/vehicles-you-use-for-work. Is my understanding correct? Thanks.

Hi,

Yes, you are correct.

Thank you.

Hi please can I check if my thoughts are correct. I own an electric vehicle and my employer has asked me to travel to meetings Approx 100 miles away. When I have come to claim my mileage I have been told that I can only claim 5p per mile for a personal car. I was under the impression that it was 45p per mile under 10,000 miles whatever the fuel type for a personal car?

Hi,
 

The 5p may be what your employer is allowing you to claim and you can then claim the difference from HMRC. Guidance is available at : Claim Income Tax relief for your employment expenses (P87)     . Thank you.

Hi Hope this is the right forum. I have a leased company van that is supplied with fuel card and I pay the tax for the right to use this van privately. All private mileage is charged back to me via a salary deduction. This year they have changed the charge twice from (pence per mile) 13ppm - 16ppm - 22–ppm without notice. They then a month after the last increase emailed to tell me my ppm had gone up to 22ppm and that on Feb next year they are going to add another surcharge of 10ppm for wear and tear on the vehicle taking the cost to 32ppm. Are they within their rights to put the costs up so high and are they allowed to charge wear and tear as a separate cost per mile. I understand fuel etc went up but they haven’t gone up over 250% which is close to how much the charge to me has gone up now.

Hi,
 

When paying back for private use, you need to pay back at the AFR or higher otherwise a tax charge will be due for fuel benefit. If the employer is charging you higher than the AFR, they need to explain to you why this is the case. See link: Advisory fuel rates     . Thank you.

Hi there, Like other posts previously, I have had a company car for 19 years and I have now gone cash for car from May 2022. I still have a small taxable benefit on my tax code to cover the first couple of months of the year with the company car. I still have a company fuel card for all fuel spend for my car. I have a dongle that tracks my mileage. At the end of each month I will then submit my mileage to each journey selecting business or private. This then gives me a breakdown of business mileage and private mileage for the full month. It then uses this figure to calculate the percentage of fuel use for private mileage and then this value is then deducted from the next months salary so that all private mileage fuel is costed to myself. I do not submit any mileage claims for business use on the car and I am therefore claiming tax relief on the business mileage. As I have never done this before I sent through the first claim for May, June and July to using the link mentioned above. This came back with queries wanting more detail, fuel receipts and rezoning etc which I did. This has now been passed to the expense team and due to complete in April. Does this mean all the information I provided would then be correct? Am also right from the responses above that the tax relief would be paid at Business Mileage x 45p x 40% (as a 40% tax payer). I do about 20k a year business miles so any after the first 10,000 it would be at 25ppm. with the fuel card being irrelevant in the calculation as the company does not pay my a mileage allowance on top of the fuel card. Since the first claim went in I was going to do another claim for August to November, however due to the mileage it says it would need to go through as a self assessment which I don't currently do. If this is right I would then need to wait until the end of tax year? Hope this is all clear enough., I am just trying to make sure I am doing this correctly and the easiest and clearest way for HMRC so I can get it right going forward especially is it is a significant sum which as the process is for, the wear and tear costs due to mileage for the company are high (tyres, servicing, brakes as well as depreciation due to mileage). Many thanks, Mark

Hi,

If we have accepted your claim, you will receive a letter advising of this and any repayment due or if we were going to amend your tax code.

If your employer is not reimbursing you for business miles or is paying below 45p for up to 10,000 miles and 25p after that, you are correct to use those rates.

If the expenses amount being claimed are £2500 and above you will need to register and complete a Self Assessment tax return for the year.

Claim tax relief for your job expenses

Thank you,

Having read the previous posts, I would like to make sure how this works please: Client has a personal car which he uses for travelling to his customers. Employer provides a fuel card and makes a deduction for private mileage. There is nothing on his P11D and they do not pay him a contribution towards the 45p. Am I allowed to claim for his 45p per mile to cover the other costs of running his car on his self assessment?

Hi Is a self assessment required on the relief you receive or gross amount