Thread: P87 - Mileage Allowance Relief

I pay for my own fuel then submit claims based on business journey's minusing off ordinary commuting mileage. So I'm not given any 'personal mileage' or a fuel card. I don't get any allowance towards my mileage, just my company car. I'm going to submit what HMRC have asked me to and make reference to the guidance that Lorraine gave me and ask them to confirm if I'm eligible to claim. I'm totally...

No the mileage allowance is only for personal car for business use. As it is a rate that was agreed many moons ago for wear and tear of the car/insurance/deprecation etc plus fuel. therefore you can only claim mileage for the period 06/04 - 09/09

If you have a company car the only "expense" to you is the petrol because the wear and tear plus other expenses are met by your employer. The 40/25p rates are the full cost of running a car and only apply to business mileage in a private car. The reason your tax code is already adjusted is to tax you on the benefit of having a car available for non business use.

Not sure how this can apply, unless they mean that your benefit will be pro-rated for the time you had the car rather than the whole year - but that's what should happen anyway. I've had a company car for the last 10 years and at no point through that time have I been allowed to claim tax relief for anything to do with it.

I've had a couple of goes at answering this but keep ending up with pages and pages of gobbledygook. My guess is that when you spoke to Lorraine she was referring to Advisory Fuel Rates. As far as I remember they should not be used for employees claiming tax relief on their travelling expenses. http://www.hmrc.gov.uk/manuals/eimanual/EIM30057.htm Can you explain what happens in your case regarding fuel? Does your employer provide you...