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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I have a relatively simple query about Company Car Mileage

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Hello - i have a relatively simple query about Company Car Mileage Tax
JA: Have you talked to a tax professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: No
Customer: replied 3 months ago.
Specifically - my company provide a Company Car - with regualr deductions from my salary - in turn i pay tax on the BIK. My query is regarding mileage claims. My company reimburse using the HMRC Advisory Rates - i think c £0.12p per mile. Can i claim the difference between this as the normal Mileage rates of c£0.40 pence per mile (<10,000) I used to claim this back in my self assessment when instead of taking the car option, i took the cash and leased my own car. I'm not sure if i can still claim this difference using a company car.

Hello, I am one of the eperts on Just Answer and pleased to be able to hlep you with your question.

Firstly, you have the HMRC rates slightly wrong, it is 45p per mile, 25p over 10000 miles in a tax year. The difference between what your employer pays you per mils and the HMRC can be claimed as an expense in employment on your annual self assessment tax return. Indeed, I used to do this when I was a Civil Servant and using my own car.

Customer: replied 3 months ago.
Thank you. I realise this can be claimed when using your own car - as there is wear and tear etc using your car for company business. But is that the same when i have a company car - they pay for tyres/servicing/insurance etc.?

From whence are you extracting these rates?

Customer: replied 3 months ago.
My company reimburse me using the HRMC Advisory Rates (https://www.gov.uk/government/publications/advisory-fuel-rates) So 11 pence per mile. If i use my own car for work i agree i can claim the tax back on the difference between the 11 pence and the 45p per mile you mentioned. I have been doing this for several years. My question is; can i continue to claim this even when using a company car?

Yes, you can, indeed I have done so myself as I told you. The Inland Revenue, as it was then, did not bat an eyelid. Just go on as you are.

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