Urgent Help Please Re Petrol Allowance

[Tommyw242424]

Hello

 

I have been offered a new job and must decide today if I am to accept. As part of the job I get a car allowance, to maintain (tax insure etc etc) a car. For business mileage I get to claim 12p per mile.

 

The car is mine but the company pay the allowance.

 

Is 12p the correct figure to claim back?

 

Many Thanks in anticipation.

[rebel11]

Hi Tom

 

Welcome to CAG

 

The guys will advise as soon as they are available.

 

Here some info, not sure it is relevant to your question

 

Fuel-only mileage rates

 

HM Revenue & Customs advisory mileage rates for employee private mileage reimbursement or employer reimbursement of business mileage are:

1 June 2010

 

These mileage rates came into force officially on 1 June 2010.

Baseline fuel mileage rates Rates per mileEngine CapacityPetrolDieselLPGUp to 1400cc12p11p8p1401 - 2000cc15p11p10pOver 2000cc21p16p14p

[maroondevo52]

Hello and Welcome,

 

Not something I'm too clued up on but this link should help................

 

http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

 

Regards.

 

Scott.

[buzby]

If you accept, do remember you need to ensure your insurance is extented to cover business use on behalf of your employer.

[crem]

12p per mile will bearly cover the petrol cost of a standard car. For using a private car, the tax man allows you to be paid 40p per mile for the first 10,000 miles, and 25p per mile after that. The reason for the reduction at 10,000 miles is that at that point the tax man deems that the fixed costs of VED, insurance etc have been covered and beyond that he only allows for the fuel, depreciation, and wear and tear etc that carry on being an expense.

 

If your company pay you less than 40p/mile, you are allowed to claim for the "lost" value on your tax return at the end of the year.

 

http://www.contractorinfo.co.uk/index.php?q=node/210

[heliosuk]

Not quite so crem. The 40p allowance only applies if a contractor and both allowances only apply for 2 years max. The contractors place of work is normally deemed to be the home address. As the OP will be an employee then the true rate is around 28p per mile. Any claimed mileage especially if travelling on business from home, if an employee, must be distance covered less the distance from home to normal place of work. The problem with these figures is that they are so far out of date given the increase in fuel costs and have not taken at all into account inflation for some years. However, if the OP's normal place of work has been relocated then one can claim for the difference as you say.

 

Whichever way you look at it, 12p is back in the stoneage as are the current rates. Most responsible companies offer a sensible rate or access to a pool car if you are requried to use your own for business as they realise the running costs and the insurance implications as pointed out.

[crem]

Whichever way you look at it, 12p is back in the stoneage as are the current rates. Most responsible companies offer a sensible rate or access to a pool car if you are requried to use your own for business as they realise the running costs and the insurance implications as pointed out.

 

 

Agreed

[rossdunbar123]

I got 20p per mile as of 2009, so can i claim more back?

[crem]

I got 20p per mile as of 2009, so can i claim more back?

 

 

Yes, but you may need an accountant to help you work out how it is best done. If you use one already, then shouldn't be a problem as they will help you with it within their fee, if you don't have one, then you may have to try working it out yourself. I can't remember which section of your self assessment form it goes on, but in essence, you are claiming that 20p per mile of your taxed income shouldn't be taxed because you had to spend it on a business cost. Note you are not getting 20p per mile back off the taxman, only the tax you paid on that 20p per mile.