Hi
Client has got rid of company car and bought a personal car. The company has provided him with a fuel card (reported on P11d). Client is wanting to claim 45ppm for his business miles.
This sounds like he would be double claiming, but, I can see his point about wear and tear to personal vehicle.
Please can anyone clarify if can claim mileage rate too?
Thanks
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Replies (7)
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This sounds like he would be double claiming ....
No problem with your hearing then.
EDIT: If he's being taxed on the value of fuel purchased on the card, then it's not a double claim.
Here's a thought, why doesn't the company just pay him for business mileage?
He could claim the 45p per mile and the company would deduct the fuel card payments from the claim before paying the balance.
If he's paying tax on the fuel he draws on the fuel card, how is that a double claim ?
The free fuel is part of his salary package.
Nevertheless, it's ultimately a matter for employer and employee to agree upon. Sounds like the employer hasn't really thought it through.
He can claim whatever mileage rates agreed between himself and the Company.
Then, at the end of the tax year the Company carries out a calculation setting the 45p/25p maximum tax free rates against the amount physically paid and not dealt with through the payroll. The difference is the taxable benefit he has received.
Very similar to when councils pay civil servants a monthly car allowance and petrol claims.
It's open to the employee to claim his 45/25p a mile as a deduction and claim the tax relief, obviously.