Can i reclaim tax if my fuel cost more than the AFR in a company car

Can i reclaim tax if my fuel cost more than the...

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Hi I am repaid my fuel, which I pay for, on my company car, at the AFR rates from HMRC, via a monthly expense claim for business mileage. I reckon my diesel actually cost more than this and have all my receipts with litres and costs. I seem to recall that if the cost was higher you could reclaim, is this true and how would I calculate?  Thanks Simon

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By johngroganjga
25th Apr 2015 16:29

You can claim what you like - it's just that you pay tax on any excess over the HMRC fuel rate.

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By Bungo
25th Apr 2015 19:37

Reclaim from whom?
What do you mean? Reclaim more from your company? Or put it on your tax return?

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By Simon.stronach
27th Apr 2015 15:29

from HMRC thanks

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By Marion Hayes
25th Apr 2015 21:58

Statutory allowance

Legally an employee is only entitled to claim tax relief up to the approved rate.

The mileage claim from the employer is up to your terms of employment.

Any expenses received under the approved levels can result in a claim for tax relief on behalf of the employee.

Any expense claim over the approved levels will result in a tax and national insurance liability.

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By SimonLever
27th Apr 2015 15:42

Read the guidance - it is clear

"If you pay a rate per mile for business travel no higher than the AFR, for the particular engine size and fuel type, HM Revenue and Customs (HMRC) will accept there is no taxable profit and no Class 1A National Insurance to pay.

You can use your own rates which better reflect your circumstances if, for example, your cars are more fuel efficient, or if the cost of business travel is higher than the guideline rates.

If you pay rates that are higher than the advisory rates and can’t demonstrate the fuel cost per mile is higher, there is no fuel benefit charge if the mileage payments are solely for miles of business travel. Instead, you will have to treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes."

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