Company Vans: claim for Approved Mileage Rates

Company Vans: claim for Approved Mileage Rates

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I have a scenario which is a tad unusual I would guess - employees who:

1. Are provided with Company Vans.

2. Pay for all their fuel for business mileage.

3. have 'insignificant' private use (for which employees have signed statements to this effect); hence zero Van Benefits apply.

At present, I can see no good reason why these employees cannot claim the Approved Mileage Rates, 45p per mile for the first 10,000 and 25p thereafter in reapect of their business mileage. The main lingering concern is the fact that the Approved Mileage Rates incorporate elements for depreciation and servicing etc which the employer actually suffers, in addition to the fuel element; so have looked for a 'catch' in HMRC Guidance literature (to thwart me!), with no success to date.    

After spending considerable time researching, I can find no specific examples akin to this.

So, would be most grateful for any input at all, particularly if a respondent has experience of a similar situation.

Replies (9)

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By andrew55
27th Sep 2013 12:58

Advisory fuel rates?

Surely if the company buys the van and pays for all costs except fuel the advisory fuel rate would be more appropriate?

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By stratty
27th Sep 2013 13:23

Mileage Allowance

I always thought you had to own the vehicle in order to claim mileage on it?

i.e. As the company owns the vans the employees cannot claim mileage for them.


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By Alfie Bet
27th Sep 2013 13:35

It's not their own car

That's just a condition that HMRC slipped in. The legislation says that it cannot be a company vehicle in order for AMAPs to be paid or AMAR to be claimed.

As Andrew55 says, the advisory rates are appropriate to company vehicles.

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By Jamster
27th Sep 2013 15:00

Advisory Fuel Rates

Many thanks, Andrew, Stratty and Alfie for your input.

I also thought it reasonable that Advisory Fuel Rates would apply (thereby providing an appropriate level of relief for the fuel alone), but EIM22945 states that "these (Advisory Fuel) rates cannot be used in relation to vans as this is not one of the uses specified on the HMRC Website. This is because they were not calculated in relation to vans but from the average fuel consumption for the most popular fleet cars".

Looking, now, at EIM31255, this seems to also preclude AMAPs from applying in this situation. Providing I am correct in this understanding on AMAPs (?) (&as I believe you have referenced), I now wonder how these employees are able to claim a deduction for the cost of fuel for business mileage which they have incurred, given that this is not reimbursed by the employer?

It seems that there must be some method available for them to make a claim for these expenses incurred "wholly, exclisively & necessarily........"

Any thoughts/ conclusions most appreciated.





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Replying to jcace:
By tonycourt
27th Sep 2013 15:48

Whatever it cost is what they can claim

If there isn't a specific set of rules governing a deduction for job related expenses then as you imply a claim under the general expenses rules, s.336 ITEPA can be made.

It's up to the employee to work out how much they spend on fuel for business travel - usually HMRC will be happy to accept a mileage rate based on a sample period.  

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By stratty
27th Sep 2013 15:09

P87 - Section 4

I would have the employees complete a P87 and submit the expense under Section 4.  

If successful they would get tax relief at their marginal rate on the business expenses suffered and not repaid.

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By ds
03rd Oct 2013 17:59

Why doesn't the van owner pay for the fuel ?

are the van drivers "employed" by the company under PAYE or are they considered self-employed and sort out their own tax and NIC? Is this some kind of franchise operation ?

It seems odd that the company provides the vans, insurance, servicing, vehicle excise duty, MOT etc but not the fuel to run them ? Do the drivers get any kind of compensation for the fuel they use for legitimate business use? I've never heard of such a thing before. How long before we have to pay to work for these enterprises ?

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By davidgoodall
14th Oct 2013 11:32

It's really quite simple

AMAPs don't apply because the vans is a 'company vehicle' - s229(3)(b) and s236(2) ITEPA.

Advisory Fuel Rates don't apply because they're only for cars, and this is a van (see - the clue is in the title!)

That leaves the amount claimable as the actual cost of business travel under the ITEPA travel rules, s336 ITEPA onwards.


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By InnovationPSL
18th Jun 2014 23:18

Not as it first appears

Its a bit more complex than that

If Jamster wants to call me direct i'd be happy to help


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