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Benefit in kind car lease -p11d

Advice on tax implications

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Hello, looking for a bit of advice please. 

I currently have a lease car through my works salary sacrifice scheme. I also receive a monthly car allowance of £5.2k pa. 

I travel circa 10k miles per year for work and I'm able to reclaim mileage via expenses at around 11p per mile (car 2ltr diesel). 

What I'm wondering is whether I'm able to reclaim for mileage tax relief on my P11d? I.e 45p -11p x tax at 20%..... a few of my colleagues have told me they do it but I think my circumstances may differ due to having the salary sacrifice car? 

any help would be much appreciated. 

kind regards



Replies (4)

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By Bobbo
29th May 2020 12:46

Other posters have far more knowledge of this than me but my understanding is that the 45p rate refers to using your own private car. A car provided by your employer is not such a car.

Don't really know why your employer would provide you with a leased car through salary sacrifice and pay a car allowance too...

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Replying to Bobbo:
By Craiggy9
29th May 2020 12:58


Thanks for taking the time to reply.

The car is through a Salary sacrifice scheme benefit, similar to a gym membership etc. So separate to the car allowance Which is part of my remuneration. Thanks for the advice.

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By Wilson Philips
29th May 2020 12:48

You do not claim tax relief via form P11D

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By paul.benny
29th May 2020 15:09

Company cars are rarely cost-efficient for the employee. Unless your circumstances mean that you can't get credit to buy/lease or your claims history makes your insurance hugely expensive, you're almost certainly better off taking the cash and buying/leasing a car yourself. Salary sacrifice schemes were a loophole closed up several years ago.

And, if it's your car, you could claim through your tax return for the difference between employer mileage and HMRC scale rates. Make sure your car is insured for business use, though.

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