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Company Car Mileage Rates

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Happy new year everyone!

A quick question about company car fuel rates. I have a company car which has a 3L diesel engine and it seems my company are only paying 14.4p per mile. According to http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm I should be getting 17p per mile for ts sized engine.

I have written to Human Remains questioning why they are only paying 14.4p and where they get this from.

Am I right in thinking that these are "advisory" rates only and that my company are just being tight kunts in not paying me e full rate? If so, do I presume is means filling in A flipping tax return to reclaim the difference?

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Happy new year everyone!

A quick question about company car fuel rates. I have a company car which has a 3L diesel engine and it seems my company are only paying 14.4p per mile. According to http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm I should be getting 17p per mile for ts sized engine.

I have written to Human Remains questioning why they are only paying 14.4p and where they get this from.

Am I right in thinking that these are "advisory" rates only and that my company are just being tight kunts in not paying me e full rate? If so, do I presume is means filling in A flipping tax return to reclaim the difference?

I don't think that they're even that, they are the tax free payments that can be made.

I worked somewhere where they paid 40p but left it there when the IR rates went up to 45p, but I knew one bloke whose company was only paying him 20p and he did loads of miles; it's up to the company.

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I don't think that they're even that, they are the tax free payments that can be made.

I worked somewhere where they paid 40p but left it there when the IR rates went up to 45p, but I knew one bloke whose company was only paying him 20p and he did loads of miles; it's up to the company.

you an claim tax relief on the difference.

Jut to confirm, this is not my car, it is the company car which I drive, so I'm not in a situation where I am paid a mileage allowance for a car that I own but use for business.

The rates I posted are lower as they are only supposed to cover the cost of fuel used in vehicles which are company owned. I know you can claim tax relief for the difference where they pay you less than the advised government rate for your own car, but need to confirm the situation for cars which are owned by the company.

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Am I right in thinking that these are "advisory" rates only and that my company are just being tight kunts in not paying me e full rate? If so, do I presume is means filling in A flipping tax return to reclaim the difference?

Yes you are correct in thinking that these are advisory rates only. HMRC allow you to claim up to 45p per mile for the first 10,000 miles of business use and then 25p per mile for any further business use.

If your employer pays less than their advisory rates then you can claim tax relief on the difference. This assumes that you are using your own vehicle as the Approved Mileage Allowance Payment (AMAP) covers the entire estimated cost of running a vehicle, including depreciation, repairs, insurance, road fund licence and fuel.

Where in your case your employer is reimbursing you for the cost of fuel supplied by you for business use then the advisory rates can be used to reflect the cost of fuel used. The employer can use a higher rate if he can demonstrate that a higher rate is appropriate. Unfortunately the employee cannot use the published rates to claim a deduction from his taxable income if the fuel cost reimbursed by his employer is lower than the advisory rate.

This link to HMRC takes you to the explanatory page from their manuals.

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