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Thread: Found it! Help regarding reimbursement for use of my own car for business use.

  1. #1

    Found it! Help regarding reimbursement for use of my own car for business use.

    Ok this is an odd one or at least it seems to be, I have been offered a job by a French company but to work in the UK, they have agreed that I should sort my own car and will pay me £560 a month to do this, originally they said this would include fuel but I told them this figure would only cover aquiring a car, insurance and service.mso I’m now trying to find out what the recommended figure is to cover the per mile fuel cost.

    I know that for my tax I will claim £0.45 for firstb10k and £0.25 after that but what should the company be paying me? I seem to recall a figure of around £0.10- 0.15 depending on car but I really need a link to an HMRC page confirming this and I just can’t find it.

    Any guidance appreciated.
    Last edited by justin44; 6th January 2018 at 10:07.

  2. #2
    Craftsman
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    Hi

    Is this what you're looking for:

    https://www.gov.uk/expenses-and-bene.../rules-for-tax

    Jake

  3. #3
    Grand Master JasonM's Avatar
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    I may be wrong, but the 45 / 25p is the maximum allowed, the company can pay you what they like under that if you agree, you then claim the difference if it’s under the 45 / 25p, you can’t claim the full 45 / 25p if they are giving you part of it.
    Cheers..
    Jase

  4. #4
    Master Wolfie's Avatar
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    I claimed the difference back through HMRC iiirc (I think it may have just been tax relief on the delta. You need do to a self assessment

  5. #5
    Quote Originally Posted by Jake View Post
    Hi

    Is this what you're looking for:

    https://www.gov.uk/expenses-and-bene.../rules-for-tax

    Jake
    Close but no, this is the bit I can find, what I want is the recommended rate per mile a company should pay me if I use a car for which they have paid me a car allowance. I just can’t think of the correct term to search.

  6. #6
    Typical, been searching over an hour and now found it!

    It’s this. https://www.gov.uk/government/public...m-1-march-2016

  7. #7
    Master Wolfie's Avatar
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    Quote Originally Posted by justin44 View Post
    Close but no, this is the bit I can find, what I want is the recommended rate per mile a company should pay me if I use a car for which they have paid me a car allowance. I just can’t think of the correct term to search.
    Ah - gotcha!

    It varies on engine size and diesel or petrol

    It varies from around 15p per mile for a small diesel to 25p a mile for a large petrol

    It used the be 2l engines as the cut off point

    I can’t find the current figures but I know it varies on that basis

  8. #8

  9. #9
    Master IAmATeaf's Avatar
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    If you’re getting an allowance then surely these rates would apply?

    https://www.gov.uk/government/public...o-present-date

  10. #10
    Master
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    Having just finished being investigated by HMRC for this exact subject, I can confirm that JasonM, is spot on.

    The company can pay you whatever they/you wish but you should pay tax on it. What is tax deductible is 45p for the first 10k then 25p thereafter. This mileage rate as far as HMRC is concerned covers all associated motoring costs, ie. Fuel, depreciation, servicing, insurance.

  11. #11
    If you’re getting an allowance you don’t get the 45p a mile

    Fact
    The 45p is if you use your own car with no contribution etc

  12. #12
    Grand Master JasonM's Avatar
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    Quote Originally Posted by Sweepinghand View Post
    If you’re getting an allowance you don’t get the 45p a mile

    Fact
    The 45p is if you use your own car with no contribution etc
    Not sure that’s correct. I get a car allowance plus claim the mileage at 45/25p. My company is a sticker for ‘by the book’ and wouldn’t do it if it wasn’t above board.
    Cheers..
    Jase

  13. #13
    Master Wolfie's Avatar
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    Quote Originally Posted by JasonM View Post
    Not sure that’s correct. I get a car allowance plus claim the mileage at 45/25p. My company is a sticker for ‘by the book’ and wouldn’t do it if it wasn’t above board.
    Exactly the same for me Jason…. I’d rather have cash and drive an old car as I only do around 3k business miles a year and get 45p a mile from my large company

  14. #14
    Craftsman
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    Quote Originally Posted by JasonM View Post
    Not sure that’s correct. I get a car allowance plus claim the mileage at 45/25p. My company is a sticker for ‘by the book’ and wouldn’t do it if it wasn’t above board.
    It isn't correct. Whether you get a car allowance or not is irrelevant. If you are using your personal car for business mileage then the 45p/25p rates stated by you are correct.

  15. #15
    The rates quoted are correct and even if your company pay you nothing per mile, you can claim 45/25p per mile off the tax man, however if they pay an amount eg mine pay 18p per mile then you can only claim the difference back from the tax man, 27p and 7p in this case. Show full working outs on your Self assessment otherwise it can get messy. And yes irrelevant if you get an allowance as that is taxed as income.

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