Not sure if it is the result of ploughing through self assessment tax returns for the last few weeks that has scrambled my brain, but this has got me stumped.
The company has provided a fuel card to an employee for a car that is personally owed by the employee. The full cost of the fuel spend has been included on the employees P11d and then, as per the car scheme rules, a personal contribution of 15p per mile has been made by the employee based on the number of business miles recorded in the year. The car scheme document states that this reimbursement rate has been agreed with HMRC.
The employee has also been reimbursed through payroll at 15p per mile for each business mile that has been recorded (uncapped). The employee also then receives a running cost of reimbursement of 25p per mile but this is capped at 7,000 miles in the year.
The employee has done 19,374 business miles in the tax year and 10,701 personal miles. It would appear that the employee can make a claim on their SA tax return for their business mileage as they have exceeded the 7,000 cap. Is it simply a case of claiming the excess over 7,000 miles at 25p or is there more to it than that?