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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15976
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I will be running a private car using a car allowance of £600PCM,

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I will be running a private car using a car allowance of £600PCM, at 40% tax this works out at £360. Fine.
I will be given a fuel card to cover all diesel and deducted 11p per mile for personnel miles from my overall expense claim. The company will cover business fuels costs.
Can I utilise the 40p/10000 25/+10000 AMAPS thing or is that ruled out as the company is not expecting me to pay the business mile fuel - it seem this also covers other costs so perhaps they should declare what they are costing the business miles at and then I could claim the remainder?

As you will be using your own car for business travel, it will depreciate in value partly because of business mileage. You can claim tax relief for that using the AMAP rates. That claim will also cover all the running costs of the car including fuel, insurance, MOT, servicing, road fund licence but not road tolls or are parking fees.

You will almost certainly be covered by Example 2 here. At the end of the tax year, you should be issued with a P11D which will show the total value of the fuel purchase costs charged to your fuel card. See the last paragraph under "Income Tax position". The P11D should give you credit for the private mileage deduction from your salary.

If you complete an annual self-assessment tax return, then you would enter the P11D figures into your tax return employment pages using the corresponding box numbers from the P11D and then claim tax relief using the AMAP rates in the expenses claim section.

If you don't complete an annual self-assessment tax return, you cam make a claim for tax relief for your business mileage on a P87

Take a look at EIM31205, EIM31210 and EIM31215 for more information.
I hope this helps but let me know if you have any further questions.
Customer: replied 2 years ago.


First I admit I do not understand anything about tax :-)

So from Example 2 it states:

"The employee is not required to pay for any fuel"

I will be repaying the personnel miles by forfeiting the 11p/mile from my expenses - does this mean that this does or does not constitute a benefit?

Am I correct in thinking that the best course of action is to save a copy of all the fuel bills and keep a running total, if it ends the year less than £2500 I simply need to await the P11D and then complete a P87?

There's no shame in not knowing about tax. My car's engine bay is a mystery to me.

If you will be repaying all private fuel costs, there can be no taxable benefit.

If I were you, I'd ask your employer's payroll section or, more appropriately, the person who will complete the P11D's how the business mileage will be shown on your P11D. P11Ds have to be submitted to HMRC by 6 July so you should have it by then at which time you can determine whether you need to complete a self-assessment tax return or can get away with a P87.
Customer: replied 2 years ago.

OK - is it acceptable to keep this open and await a reply from the new company?

Your help is already excellent but I may have a follow up?



That's fine.

You will always have access to the question, even after accepting the answer.
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