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Posted Wed, 15 Nov 2023 10:22:21 GMT by
I have a general question about the correct way to calculate the pence per mile to claim tax relief on business miles. Can someone from HMRC confirm if I am correct or incorrect in my interpretation. Figures are given for illustrative purposes and ease of calculation: • Employed full time on PAYE • Salary: £45,000 (Lower rate income tax band) • Car allowance: £4,800 (taxed at lower rate 20%) • Employee provides: Car, insurance, roadside assistance, service, maintenance and road tax. • Employer provides: Fuel card for all fuel purchases • Employee submits monthly mileage log and all personal mileage deducted after tax each month • Employee submits self-assessment o Claim tax relief on business miles (45p for business miles up to 10,000 then 25p for business miles over 10,000) with no deduction for fuel card spend etc. o So 20,000 miles would be:  45p x 10,000 = £4500  25p x 10,000 = £2500  Total for calculating tax relief is £7,000 (this is the figure entered into the self-assessment) o To calculate return you calculate 20% (lower rate income tax band payer) of £7,000 = £1,400
Posted Wed, 22 Nov 2023 08:36:23 GMT by HMRC Admin 25 Response
Hi L.J.G,
If the employer provides you with a fuel card you would needs to take into account the business miles paid on the fuel card.
If no businees miles paid then yes the calculation would be correct. 
Thank you. 
Posted Thu, 21 Mar 2024 07:20:29 GMT by Steve Morton
Business Mileage Claim For Personal Car With A Company Fuel Card - Hi, I want to make my first claim for this and it will exceed £2500. I believe I will need to complete a tax self assessment but have obviously missed the January deadline. How can I make a claim for at least £2500 to avoid waiting another year?
Posted Wed, 03 Apr 2024 05:49:43 GMT by HMRC Admin 25 Response
Hi Steve Morton,
To give you the best advice, we may need some more information regarding your specific claim. 
Pease contact us here:
Self Assessment: general enquiries
Thank you, 

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