Fuel card / Tax question - Help!!

[ReaperCushions]

Hi All,

After delving into the murky world of tax and tax returns, I can only say that I am thoroughly confused. Can anyone help me?

My situation:
- I run my own car for private and business miles
- I am given a car allowance from my employer (£7k pa)
- I am given a fuel card by my employer to be used for ALL miles, private and business
- I do around 8k private miles a year and 20k business miles per year
- I pay nothing to my employer for my personal miles, and they pay nothing to me for business miles
- I pay 40% income tax

Questions!

1) It appears I am able to claim the business miles back from the tax man at 40p/25p - is this correct?
2) How do I go about it? I've never done a tax return before, and according to the HMRC website I can't register for one as I am not self employed.

Can anyone shed any light on this as to what I can / should do?

Thanks!

[sumo69]

You have PM

David

[Gio G]

You can claim your business mileage at those rates back through your tax return, under "job expenses" If you don't have a tax return to fill out, just write to HMRC, as I sure they will send you a form for this.

[sumo69]

Err no he can't as the 45p per mile HMRC approved rate includes reimbursement for the fuel which in this case is being paid for by the OP's employer.

He can use the AA mileage rate less the fuel element therein for his business mileage.

Any claim may be via a form P187 (which has a limit) or via a self-assessment Tax Return.

David

Gio G said:

You can claim your business mileage at those rates back through your tax return, under "job expenses" If you don't have a tax return to fill out, just write to HMRC, as I sure they will send you a form for this.

[bogie]

the total fuel you have paid is shown on your tax return as a benefit value
you claim the business miles at 45p/25p as an expense (you need to keep a record)
you get the tax back on the difference via your tax code or one off payment

simple as that, been doing it like this for over 10 years as have everyone else in my company with fuel cards but private cars. So you are basically taxed on the benefit for private miles

[Quietlybonkers]

ReaperCushions said:

Hi All,

After delving into the murky world of tax and tax returns, I can only say that I am thoroughly confused. Can anyone help me?

My situation:
- I run my own car for private and business miles
- I am given a car allowance from my employer (£7k pa)
- I am given a fuel card by my employer to be used for ALL miles, private and business
- I do around 8k private miles a year and 20k business miles per year
- I pay nothing to my employer for my personal miles, and they pay nothing to me for business miles
- I pay 40% income tax

Questions!

1) It appears I am able to claim the business miles back from the tax man at 40p/25p - is this correct?
2) How do I go about it? I've never done a tax return before, and according to the HMRC website I can't register for one as I am not self employed.

Can anyone shed any light on this as to what I can / should do?

Thanks!

You are a 40% taxpayer. You are required to complete a tax return if you have income or expenses to declare. Call them on 0845 3000 627 and get them to issue you with a unique tax reference and complete the return online. If you are stuck, take all the info on salary, mileage and fuel and go to an HMRC enquiry office where they will help you. Or go see an accountant.
The £7k is taxed as part of your salary (or should be).
Easiest way -
You should be taxed on the all the fuel at the fuel rate (typically around 15-20 p per mile - rates on HMRC website which are based on fuel type and engine size), but this amount can be supplied from the fuel card records.
You can claim tax relief on your tax return for the business miles at 45/25p per mile