An employee has a company car, and pays tax on the BIK.
Private fuel is NOT provided
Employee pays for business fuel, and is remibursed on a monthly basis
The figure used by the employer to calculate this reimbursement is below HMRC's Advisory Fuel Rates
Can tax relief be claimed on the difference ?
If so, how far back can the claim go ?
Thanks
Replies (3)
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Logically, yes.
That said, the HMRC rates are not particularly generous. You should perhaps be asking your employer why they are paying a mileage rate which doesn't cover the fuel - or looking at your driving style (or choice of vehicle) to see why it results in such poor fuel consumption.
The OP doesn't actually say that his employer's mileage rate leaves him with a shortfall on fuel costs