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bigduckontax, Accountant
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Hello, I am an IT engineer working from home. I use my

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I am an IT engineer working from home. I use my private car for business. The company provides
a fuel card that I use for all fuel. On a monthly basis the number of personal and business miles
are calculated and sent to the accountanct department.

The company pays 10p per mile for wear and tear
on the car. All private milgae is calculated and taken from my wages.

I am fairly new at the company but others have mentioned I am able to claim amilage allowance

from the taxman for 35p per mile ( 45 p gov recommended milage - 10p per mile the company pays back to me).

Is this the case ? If so when do/can I claim this , at the end of the tax year ?


Hello PC, I'm Keith and happy to help you with your question.

You have been informed correctly. The HMRC approved mileage rates for the use of a car are 45p per mile for the first 10,000 miles and 25p thereafter plus 5p per mile for each authorised passenger. Any reimbursement over these levels is taxable as income.

However, there is a slight problem. These rates are all inclusive and designed to embrace both running and capital costs. You have a free fuel card in addition to your 10p per mile. I suggest that your solution is to use the 45p/25p plus passenger allowance less the 10p rate as you suggest, but reduce the mileage calculated allowance by the fuel element provided free by your employer. The claim for this is made as part of your annual self assessment return as an expense in employment It is easy to organise as you already have full records of your motoring activities. I have myself claimed it in the past without the slightest difficulty. You just have to insert a round figure. Have a look at 'Mileage expenses' on HMRC's information sites for HMRC's explanations. You will see that these payments are outside the scope of both Income Tax and UK NI contributions.

I do hope I have been able to assist you in this matter.
Customer: replied 3 years ago.

Hello Keith,


Thank you for your prompt reply to my query. What I have heard so far from my employer has been vague. You have informed and pointed me to exactly what I need to know.


Excellent service from you...thanks.


Kind Regards,



Pleased to be of assistance.

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Thank you for your support.


By the way it is Box 17 on the SA102 where you enter the mileage expenses. You have to complete a SA102 for every employment you have in each tax year, this form is part of the annual self assessment return.