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Since my company replaced company cars with an allowance, I lease a vehicle for business use. My company provides a fuel card and each month I submit my business miles; they then calculate a business mileage cost using a rate of 20p per mile and the difference between fuel purchased less the business cost is charged back to me via payroll as my private fuel cost.
I'm not sure how this works as I use a third party's program but the phrase "excess mileage" appears in box 1.15 on the employment supplement. This box relates to payments above the 40p per mile limit.
I currently get a car allowance from work and a mileage rate of 18p per mile for business miles. I doubt that I will exceed the 10,000 business miles per year. After the end of the last tax year, I submitted a form to the IR with details of what miles Id done and what rates I got.
However you can only claim tax relief on the difference between what your employer paid and what your approved mileage allowance works out at. Using your figures that would be £1071 .45 less £750 ( or how ever much the employer paid on the credit card.) = £321.45
If your employer will pay you 14 pence per mile for business mileage then, not only will you stop overpaying 3 pence per mile for your private travel but you will start making 3 pence per mile from your business travel. Still there are no tax consequences because the mileage rates used are within the HMRC approved rates.
I use my own vehicle for work paying for my own fuel tires etc. I am reimbursed through the government mileage allowance scheme. 45p per mile, I can only claim for business journeys essential for performing my duties. This is tax free and I recieve the full amount in my net salary. My payslip shows the separate amount for business miles.
The mileage bands are quite broad anyway.Try an insurance calculator and you'll see there can be no difference between doing 3000 and 6000 miles a year. IIRC if you exceed your stated mileage, in the event of a claim they can reduce any subsequent claim payouts accordingly.
If you did 1,000 business miles and were within the 45p band, spent £200 on fuel (for all mileage), and £20 was deducted from your salary, your net claim would be £450- £(200-20)=£270. If the employer treats the £180 as a benefit in kind, you would claim the £450.
For example; records show that the total mileage is 4,290, of which 3,165 is business mileage. The total cost of the fuel was £368. The cost of the business mileage is £368 x 3,165 / 4,290 = £271.49; The input tax is £271.49 x VAT fraction (VAT rate divided by 100 + VAT rate) The cost of the private mileage is £368 x 1,125 / 4,290 = £96.51
you get tax relief on the difference between what your employer pays and the approved mileage rates, that means you claim an expense of 23ppm and get a cash payment from HMRC of 23ppm x your tax rate (20%, 40% as applic) so 4.6 ppm for a basic rate tax payer