I have a client who is employed but is allowed to keep his van at weekends. He pays his employer 45p a mile, plus VAT., for any private mileage. He said that some months he ends up paying in excess of £300.
Now I understand that by reimbursing the mileage he will avoid a benefit of £3768 (for 2016/17 van and fuel).
My issue is the 45p a mile, plus VAT seems excessive. Now the advisory fuel rates are far lower than this. Can the employer charge what they want to? I assume the employee just has to accept this and have no option of claiming anything back as it's not in the course of employment? Just seems like the employer is doing very well out of the deal....