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Claim MAR on personal car use but have company car

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Hi,

In my employment I recieve a notional car allowance, this isn't a spearate payment but is factored in to my salary. Up until now I have used a personal car and claimed mileage at the approved rates and then claimed the tax relief on the difference between that rate and 45p. I will soon be leasing a car via a salary sacrifice scheme through my employer. I think I'm right in saying this will count as a company car so I would not be able to claim the tax relief when using this car.

For some of my work journeys it will be necessary and/or more practical to still use my personal car. On these journeys is it still possible to claim the tax relief as before?

Thanks

Replies (12)

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Psycho
By Wilson Philips
11th May 2021 23:07

Yes. Although you need to clarify what you mean by the difference between approved rates and 45p.

Thanks (1)
Replying to Wilson Philips:
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By tesamn
12th May 2021 06:26

Hi,

I probably should have said advisory rates. My personal car is a diesel and I claim 11p per mile and then on my self assessment I add a deduction for the extra 34p per mile. Once I get my company car can I continue to claim this for mileage undertaken in my personal car?

New company lease car will be an EV so claim will be for 4p for business mileage but I'm assuming I can't claim anything further for mileage in this car.

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Replying to tesamn:
RLI
By lionofludesch
12th May 2021 12:19

tesamn wrote:

Hi,

I probably should have said advisory rates. My personal car is a diesel and I claim 11p per mile and then on my self assessment I add a deduction for the extra 34p per mile. Once I get my company car can I continue to claim this for mileage undertaken in my personal car?

New company lease car will be an EV so claim will be for 4p for business mileage but I'm assuming I can't claim anything further for mileage in this car.

I agree with Wilson but - jeez - tell your boss he's an old skinflint.

He just gives you money for fuel ??? A quarter of the HMRC rate ?

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Replying to lionofludesch:
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By Hugo Fair
12th May 2021 12:55

Well, speaking as a skinflint and an old one at that, I would do (and indeed do do) the same as OP's boss.

Where we do not offer a company car (or the employee turns one down), we offer two alternatives:
1. 45p/mile (subject to the mileage) for business miles, but no other contribution (because the AMAPS rate is meant to cover everything); OR
2. a car allowance (paid as and taxed as additional salary) as a contribution to the maintaining availability of the vehicle, plus the relevant AFR for that vehicle (for fuel consumed on business mileage).

To pay both a car allowance and AMAPS would be to pay twice over for the non-fuel costs ... see https://www.gov.uk/guidance/how-to-tax-mileage-payments-for-employees-48... for this and much more.

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Replying to lionofludesch:
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By Paul Crowley
12th May 2021 13:01

Not a skinflint really
Employer gives a taxable car allowance

That system also common in public sector

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Replying to Wilson Philips:
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By Hugo Fair
12th May 2021 13:02

Just out of interest, can you provide a reference (legislation or even mere guidance) that says you can have a private car and a company car simultaneously AND elect on each journey which vehicle to use (whilst retaining the appropriate tax-relief)?

I'm not aware of anything that prevents it, but it does seem illogical to me ... and I've failed after a lengthy search to find anything on that specific scenario.

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Replying to Hugo Fair:
A Putey FACA
By Arthur Putey
12th May 2021 15:28

While not aware on any explicit coverage of this scenario in the legislation, it is not necessarily illogical. Suppose my company car is just that and we have a spell of heavy snow, during which I can only get out and about in my Land Rover. Should I need to use it for a business journey I will claim my 45p. Or it is a nice day, so I decide to use my Triumph TR6. Same applies. Whether my employer would pay me it is another matter but as a minimum I will have the tax relief..

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Replying to Arthur Putey:
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By Hugo Fair
12th May 2021 16:15

Yeah, I know what you mean ... and it's my fault for bringing logic into the equation (badly at that). I suppose I had in mind a similar situation to what you describe (an individual with a collection of cars for every occasion), but where a company car is also provided. Say this is fully electric (a good choice given the high purchase cost and low BiK value), then the govt is really subsidising that car (as part of its eco push) ... but the individual actually does most of the driving in one or more of the elderly gas-guzzling (or even diesel) vehicles - to detriment of the eco objectives, but enhancement of individual's wallet?

I knew that logic wouldn't get me anywhere, it seldom does in this rarefied arena, which is why I wondered if anyone had guidance/legislation on the topic!

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Replying to Hugo Fair:
A Putey FACA
By Arthur Putey
13th May 2021 11:20

Well it is logical to conclude that in the absence of an explicit prohibition or case law, if it otherwise conforms to the rules it is ok!

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By tesamn
12th May 2021 19:44

Thanks for all the replies, appreciate the input. From the feedback I think I will contunue to claim the tax relief when using my personal car. I'm surprised there doesn't seem to be clearer guidance on it though

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Replying to tesamn:
Psycho
By Wilson Philips
13th May 2021 11:59

I don’t understand why you (and others) would expect specific guidance or legislation on this point. The law provides that if you use your own car for the purposes of your employment you are entitled to tax relief in respect of that use. End of. It’s really that simple. The fact that you may also have a car provided by your employer (which has its own, quite separate, tax consequences) is of no relevance whatsoever.

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Replying to Wilson Philips:
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By tesamn
13th May 2021 13:26

From my point of view it's because it feels wrong :) I should probably stick to what's written down

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