Car allowance and fuel card question

mjheathcote

Centenary Club
Messages
9,033
Not really, - in your original post you refer to claiming tax back against the mileage rates when in fact your employer is paying in full for your business miles (therefore there is nothing for you to claim back) and then
as they are paying your private mileage as well, rather than claiming something back, there will be tax to pay on that benefit.

I believe it is seen in a different, separate way if you wish.
Basically your car allowance and total fuel cost used (business and private) is given to you, so you pay tax at the going rate on these values like your salary. Sorted.
Then as you are running a private car, you can claim the tax back on the business miles at 45/25p. This of course is not just for the business fuel used, but wear and tear etc being a private car used for business.

This of course, is totally different to having a fully expenses paid car, and a fuel card where you don't pay for the private miles.
 

Scaf

Member
Messages
6,512
I believe it is seen in a different, separate way if you wish.
Basically your car allowance and total fuel cost used (business and private) is given to you, so you pay tax at the going rate on these values like your salary. Sorted.
Then as you are running a private car, you can claim the tax back on the business miles at 45/25p. This of course is not just for the business fuel used, but wear and tear etc being a private car used for business.

This of course, is totally different to having a fully expenses paid car, and a fuel card where you don't pay for the private miles.


Sadly - this is not the case, if only .........
 

mjheathcote

Centenary Club
Messages
9,033
Sadly - this is not the case, if only .........

I'm not in a position to argue, only I have been advised by my future employer it is what they do, and having spoken to others in the same scenario, it is what they do too!
 

Scaf

Member
Messages
6,512
Personally I would get professional advice - the tax man can go back 6 years to correct matters which can be devastating.

If I thought for one moment what you have described is allowable I would be doing it in a heart beat.