Mieage allowance tax relief for in PAYE

Julia Crouch
Julia Crouch Registered Posts: 68 Regular contributor ⭐
Dear all,

My son is in PAYE and has a company car that he is taxed on as a taxable benefit.

He has access to a fuel card in the name of the company to buy all of the fuel used. The company he works for then charges the whole of the fuel card bill to him as a deduction from his salary. He then has to complete an expenses claim form to claim back a payment from the company for business miles at a rate of 9p per mile.

It is a mean rate of payment but this is a multi national, global company who can get away with this sort of practice.

Does anybody see any reason why he should not claim, as tax relief, the difference between the 9p and the HMR&C rates of 40p and 25p?

He has already travelled in excess of 15,000 business miles this year and with the price of fuel I would say that he is actually out of pocket with this.



  • Guest
    Guest Registered Posts: 73 Regular contributor ⭐
    the 40p and 25p relate to someone using there own car, you state this is a company car.
    Part of the 40/20p relates to depreciation, road tax, insurance, service & repair. If its a company car he has none of this
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
    I agree with our anonymous guest but I'm sure that somewhere on the Inland Revenue website is a rate for just this occurrence

    Yes there is - found it!

  • Julia Crouch
    Julia Crouch Registered Posts: 68 Regular contributor ⭐
    Thank you both

    I read the link to HMR&C, what a shame.

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