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
c
Replies (4)
Please login or register to join the discussion.
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...
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.