Bodgery

Hi - hope there's someone in a similar position or maybe a tax expert??!

I use my scooby for work & private use. In the tax year just finished I did approx. 14K business miles and 2K private miles. I get a fuel card from my company for private & work use.

I was anticipating claiming as follows:

A = 10,000 miles @ 40p = £4,000
B = 4,000 miles @ 25p = £1,160

C = Fuel on Fuel Card = £3,498 (approx. based on 0.84p/litre and 18mpg fuel consumption)

So, ((A+B)-C) = ((£4,000 + £1,160) - £3,498) = £1,161 tax relief at 40% = £664 claimable

But...

Would I be better off paying off the private mileage on my fuel card, as it's relatively small, and then claiming back a different way? (no idea if this is really an option, or if there's a better way??? - someone mentioned it to me, but they couldn't give any details...)

My company says no by the way! (or is that don't know?!)

Thanks!

Dunk

iTrader: (1)

Why would you want to fund the 100% of the private fuel when it's costing 40% at the moment ?

The other alternative would be if your employer offers a mileage allowance, & you turn back the fuel card, without doing the calcs it only normally works out if you run something v economical.

I'd say your current situation as good as it gets. (Unless you've forgotten about some more business miles )

D

dba

fuel benefit is taxed according to the co2 emmissions of your engine,mileage doesn't come into it

Dunk

iTrader: (1)

Correct if you have a co car, but doesn't apply if privately owned.

D

Bodgery

That's for when you have a fuel card and a company car. Private car and fuel card is different taxation.

Dunk - would I be better claiming depreciation, etc - don't know how this is done?

dba

imo,with such low mileage you would probably be better paying for all private fuel yourself,and claiming the business miles back

i cant fathom your company scheme from what you describe

Dunk

iTrader: (1)

99.9% sure the actual option has been taken away. (a least a couple of years ago ?)

inlandrevenue.gov.uk will confirm.

D

Bodgery

cheers dunk.

ozzy

There's a government leaflet explaining it all. I claimed for 4 years worth of tax and got nearly £5K back

With a privately owned car you can claim for depreciation, servicing, repairs, wear & tear items (e.g. tyres). Whatever is a cost to run the car.

Obviously, you can only claim a percentage of the total costs with those used for business. Business miles are only from your main place of work to whichever client/company you're visiting and not from home (different if you work from home).

I just sent all my forms for each of the years I was claiming for and didn't hear anything until a big fat check landed on my doorstep. I had a spreadsheet detailing all my daily business milage as well as all the costs. It was simple to stick the cals used in the government forms into the spreadsheet to work it all out.

Stefan

James Neill

iTrader: (1)

Key details are here

http://www.inlandrevenue.gov.uk/pdfs/ir124.htm

Basically, you can claim back tax relief on any personal expenses associated with running a private car for Business. You used to be able to do this by keeping all receipts and expense claims and claiming the difference. Now they only do it based on a Notional mileage rate

Your maths doesn't quite make sense to me as you've not taken personal mileage out of the equation.

So, you did 14,000 business miles + 2000 personal miles. Given this costs £3,498 then the company contributed 14,000/16,000 * 3,498 = £3,060.75

The difference is therefore £5,160 - £3,060 = £2,100
So tax relief is £2,100 * 40% = £840

You need to make sure that £3,060 was the total amount of money that the company contributed towards your business mileage.

Unless you somehow contribute money back to the company for personal mileage costs (which would be about £438 given the above figures) then you'll get taxed on this amount. Which will somewhat offset the £840

I think that makes sense

ozzy

Here you go:-

http://www.inlandrevenue.gov.uk/mileage/index.htm

They may have changed the rules as it's been a couple of years since I made my claim.

Stefan

Dunk

iTrader: (1)

Right in detail.....

(£3,498) Benefit in Kind for the fuel paid for by your employer (100% of)
............10,000 * 40p = £4,000 IR Mileage allowance
.............4,000 * 25p = £1,000
£5,000

£1,502

£1,502 * 40% (marginal tax rate) = refund due of £601

The actual method (using a % of real running costs has been withdrawn.) Therefore this is the only method of calculating it.

D

ozzy

2002 was the last year I claimed, but it was a P87 form I completed. I needed a P11D form from my employer as this states exactly how much they have contributed to your car allowance/milage.

Looking at copies of my claim forms, I got tax relief for fuel, servicing, repairs & parts, road tax & vehicle insurance.

I also got tax relief on the HP repayments for the car, but it covers personal loans too.

I stuck everything that was a "cost" for the car, including a replacement stereo (as "parts") and even a respray of the front bumper when it got chipped by a road sign on the motorway.

Stefan

ozzy

Ah right, I've looked at the new P87 form and they've removed the detailed calculation method as Dunk says. So looks like you just get the simple calculation based on the 40p and 25p allowance.

Barstewards!