web
You’re offline. This is a read only version of the page.
close
Skip to main content

This is a new service – your feedback will help us to improve it.



Posted Mon, 19 May 2025 16:02:38 GMT by Picnic
Hi, I am given a car allowance from my employer which is taxed through PAYE. For any business usage, fuel is paid by my employer through a company card on which they claim back the VAT. I am wondering if I am able to claim tax relief on the MAP rate which I have read is 45p/25p per mile, as the VAT claimed by the business is less than this rate. Obviously I will have to keep a log of mileage to claim this, wondering if this is possible? TIA
Posted Tue, 20 May 2025 20:03:52 GMT by Clive Smaldon
Not HMRC...you are saying the employer pays for the fuel for business mileage...in that case you dont have an expense for fuel, but obviously do for wear and tear for tyres, servicing etc etc. The 45p/25p amounts include fuel...so how would you separate the amounts for fuel out from these rates? You cant. The fact that your employer gives you a car allowance (which presumably you then have a choice of vehicle from to take account of different depreciation rates and running costs?) is meant to cover theese associated costs to you.
Posted Thu, 22 May 2025 07:08:58 GMT by HMRC Admin 20 Response
Hi Picnic,
Yes - if your employer does not fully reimburse you the full Mileage Allowance amount, you can claim relief on the difference.
You can do this via the P87, or through your tax return.
You can read more here - hClaim tax relief for your job expenses
Thank you.
Posted Thu, 22 May 2025 09:28:12 GMT by Clive Smaldon
...to repeat, for HMRC, the company pays a car allowance AND the company pays for ALL business fuel on a company fuel card...how can someone then claim mileage rates (which include fuel costs) when they havent paid for fuel at all? (and their car allowance is meant to cover the difference?)...your advice that someone can then claim is cleary incorrect

You must be signed in to post in this forum.