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Martyn

Member Since: 10 Feb 2011
Location: Stourbridge, West Midlands
Posts: 151

2014 Defender 90 Puma 2.2 PU Keswick Green

Tax Relief on Business Miles - In the Defender

I use MY OWN Defender for personal + business travel. Company gives me a fuel card so they pay all fuel initially, but I pay a fixed sum monthly and every 6 months its reconciled via my monthly mileage sheets like a utility bill and the monthly sum upped or reduced. Reality is, company pay for their exact fuel share and I pay mine. None of this rates per mile larky.

40p (45p for 2011-2012) for 1st 10k miles is OK. FACT: The beast does 26mpg and is costing 25p per mile in fuel ALONE to run. I asked HMRC, after 10k miles the rate allowable of 25p does not give me any benefit as my cost for fuel only is 25p. Its a heavy and inefficient truck. What happens when my fuel costs exceed 25p with rising costs? Are you gonna tax me on it cuz you feel it a benefit in kind? Yes they said. We would, regardless of your actual fuel cost exceeding 25p a mile and your company covering the exact cost. Errrr FACT: theres no benefit there to be had. Exact cost = exact reimbursement. They were not interested. HMRC says 25p after 10k miles and thats it.

Surely this cannot be right ????

Have been claiming for several years and this is the first time I have had this issue - caused by the beast being fuel hungry and inefficient with actual fuel costs alone per mile for fuel exceeding the allowance.

Can anyone please advise?

27th Jan 2012 8:00pm

kingofthesparks

Member Since: 06 Jan 2011
Location: Very close to Watford gap services , northants
Posts: 987

buy a g wizz, why should HMRC care that you choose to have a defender

27th Jan 2012 8:16pm

kingofthesparks

Member Since: 06 Jan 2011
Location: Very close to Watford gap services , northants
Posts: 987

Or better still get a pushbike and claim the 20p per mile and no limit

27th Jan 2012 8:18pm

pom

Member Since: 01 Jun 2010
Location: Worcester
Posts: 1343

yes its correct. This is why it makes sense for the company to provide you with a van (all defenders are now vans) that way they buyy all the fuel and you can forget about recording miles.

The days of a company car being anywhere near a benefit are long gone unfortunately.

Pom

27th Jan 2012 8:18pm

Martyn

Member Since: 10 Feb 2011
Location: Stourbridge, West Midlands
Posts: 151

Hmmm, thought as much. Looks like I won't be doing mileage on behalf of the company once the big 10,000 has been hit as I'll be paying for it!

27th Jan 2012 8:23pm

pom

Member Since: 01 Jun 2010
Location: Worcester
Posts: 1343

Mention it to them there are benefits to them to buy you a defender.

1. they get the VAT back
2. Write it off against corp tax
3. They get a happy employee!

Have a look at the disco4 as well, they do a commerical version starting at £26k and it a world better if your doing 10k+ of driving a year.

Pom

27th Jan 2012 8:26pm

ken

Member Since: 18 Aug 2009
Location: Banging Birds with my bitches !!
Posts: 4328

You try and Buy Tax Insure Service Repair etc etc etc for what a car costs you in CCT

Pretty hard so still a benefit Yes a Commercial vehicle is better (way) but one size does not fit all

27th Jan 2012 8:49pm

noworries4x4

Member Since: 24 Dec 2010
Location: Newton Abbot Devon
Posts: 1195

You can charge what ever you like for mileage as the 40p/mile is a gudeline at which they wont tax you, i charge 50p/mile when towing and 38p/mile at the moment running solo (fuel price dependant) keep all the recepts for everything servicing ect tyres and once the accountant has waived his magic wand over everything it all evens out the main thing i loose out on is the vat. If everything is under control you are not going fast enough.

Every Day 16 MY Discovery 4 Commercial Workshop and Escort Vehicle
Weekends 07MY L322 TDV8 Vogue SE
Series 1 80" 3ltr 6cyl with overdrive
No Worries 4X4

28th Jan 2012 9:09am

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