Can employee claim for 40p/mile

Can employee claim for 40p/mile

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Employee's company's policy has required him to purchase all petrol for his privately owned vehicle on the company fuel card, and has then reclaimed the personal mileage percentage back from him. Nothing shows on the P11D

Obviously the cost of the petrol is less than the 40p allowance. Is there any way to claim the difference? The Employers advice line did not think so.
Martin

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By AnonymousUser
10th Jan 2007 13:52

Any advice ...
from the Employers' advice line should be taken with a large pinch of salt. Experience has shown that they frequently get things wrong - one of the first questions an officer will ask during an ECR will be "have you used the advice line and what was the subject?", as they are aware that there may well be an adjustment required. That's from the horse's mouth!

Back to the original question, I see no reason why the employee cannot claim mileage allowances. The payment effectively made by the employer is a mileage-based payment for business use and so falls within the regime. The employee should therefore calculate the full allowance claimable using 40p/25p rates and claim the difference.

Strictly, I suppose it depends on how it has been dealt with on the P11D. No longer an expert in P11D matters, I would guess the correct treatment is for the employer to report the full amount spent on the credit card, with an entry for the contribution by the employee. This will leave the business element as a taxable benefit, against which the employee can make a s.336 claim. Alternatively, he can accept the benefit and make an unadjusted claim for business mileage at 40p/25p. Like the advice line, though, I may well be wrong in this!

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By AnonymousUser
10th Jan 2007 16:36

Claim to be made
From reading your posting it would appear that the employee is entitled to claim back the mileage allowance.

It appears that he(/she) has to use his own personal car for business mileage. The petrol element is paid for by the company.

However the fixed profit car scheme - now called mileage allowance relief, I believe - also takes into account the wear and tear on the employee's car.

The claim should be for the number of business miles travelled times 40/25p per mile and from this is deducted the cost of the petrol for business purposes.

The excess claim can then be entered on the employment pages of the tax return in box 1.32. I would suggest that an explanation be given in the white space of the calculation of the figure in the return.

There does not have to be a P11d completed as there is no benefit in kind.

Hope this helps

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