petrol allowance

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1princess1 | 22:18 Thu 04th Dec 2008 | Personal Finance
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For the last 6 months i have been doing a job in the community which includes driving about 100 miles a week. my company gives a petrol allowance of 30p per mile, and said i can claim the rest back from the government. Does anyone know if i can still do this as i only work part time and dont earn enough to pay tax.


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I think you can claim up to 45p
so in your case it would be the extra 15p per mile which adds up quiet nicely

think its a P111 form but i could be wrong
good luck and enjoy your windfall

PS keep petrol reciepts in case of any queries later on
oops not p111 form
I work for the government but the maximum I can claim is 40p per mile.
Question Author
Thanks for that. I have never kept petrol receipts but do have to keep a milage record which is sent back to work monthly. Is this money paid back through your wages or just a one off cheque?

sorry for the mis information - maybe it is 40p per mile not 45p
Reciepts are just a good idea if you have them and mine was sent in an cheque following submission of the form
still cant remember the nam of the form

Maybe P87???
aha yep P87 - google that and it should explain stuff
And you can't claim the rest from the government - just the tax on it
Just seen you don't pay tax - sorry you can't claim then
Summary as follows.
HMRC allow an employer to reimburse expenses wholly incurred in your job. For car travel the maximum rate is 40p per mile for the first 10000 miles.
If one's employer is so stingy that it doesn't pay you the maximum, you can make a claim for tax relief on the amount that the employer fails to pay.
However if you pay no tax, there is no tax relief to claim.

Your employer is being mean and disengenuous - it surely knows you pay no tax. Here is the relevant form, if you can get your hours up enough to pay tax.
I agree with buildersmate. But I don't think iprincess1's employer is the only mean employer. My last employer was a major employer which boasted about how well it treated its staff but it too failed to match the HMRC rates. Their rate has been 35-37 p for about five years now. They know that HMRC will make up some of the shortfall and they also know that employees are under the impression 37 p is generous in relation to the price of fuel (because they don't take account of longer term repair/service costs). I think even the HMRC rate is too low now.
Isn't the reimbursement maximum on a sliding scale? The most you can be recompensed is 40ppm. If you have a small cc engine the allowance will be lower.
No- the allowance is 40p a mile (for fist 10000 miles pa), irrespective of engine size .htm
This figure has been unchanged for around 6 years!
The other thing often overlooked is that the government doesn't "make up the difference" it allows the difference for tax purposes. If the employer pays 35p per mile the government doesn't pay you the other 5p, it allows you 5p per mile as deduction against income tax so in effect for a normal taxpayer they give you a further 1p per mile (5p at 20%).

I have several bug bears with this whole system.

Firstly ANY company paying less than 40p per mile is most decidedly "at it", though I would hope there aren't too many that actually do.

Secondly 40p per mile is FAR too low in terms of government allowances anyway. The government actively penalises drviers who have to use their own car for work in this way. The allowance should be raised to something nearer 60p at least. The allowance has been effectively 40p for well over a decade during which time the actual cost of fuel has rocketed never mind allowance for inflation.

Thirdly, if the government is going to allow you to claim the difference back for stingy employers then they should do precisely that, not merely refund the tax on the difference.

Rant over.
I think it is really simple. One just refuses to use one's own car unless the employer forks out the 40p/mile.
I know of few jobs where it is written in the conditions of one's employment that one does this. (Though it could occur as an implied term - I reckon there is room to negotiate).
Question Author
Thanks for all the info. I really love my job working in healthcare in the community. But i cannot carry on working like this if it means every time my car is used its costing me money. If i cut my days down so i dont do as many miles then im doing less hours so i still lose. As we have a young child at home and husband working iregular hours i cannot commit to contracted hours. Maybe i should ask to only work in one small area instead of village to village and back to reduce the milage.
Where would you stand legally if you refused to do business mileage in your own car any longer as it was costing too much?

Can the employer insist you do it or sack you for refusal to carry out requested work? Or would they have to provide a vehicle for you?

Let's presume that it's not mentioned in the contract of employment and that you have previously been carrying out such journeys in the line of work and claiming expenses in accordance with company policy. Does that make the answer any different?

I for instance do around 2,000 miles per year business mileage for which my employer pays me 40p per mile, the maximum they are allowed to do. I don't have a problem with my employers, I like what I do and I'm reasonably well paid for it and I don't doubt if the government would raise the allowance then my employer would follow suit. Never the less, it's a fact that partly because of the quality of car I choose to drive I am almost certainly losing money every business mile I drive in it. Ten years ago when I was claiming 40p per mile I was probably making money of course. Where would I stand if I went to them and said "Look, I can't afford to run my car for business any longer"? Would they have to hire me a car to do any business mileage or buy a company car? Or could they say "well you are no longer able to do the job you are employed to do" and either terminate my employment or at least move me into a different and potentially lower paying job?
Good point skyline. In practice if someone enjoys their job and wants to do well and progress they may not want to go down the route of refusing to use their car. I was in a similar position except my employer paid a ridiculous 15 p per mile. But if I didn't make the journeys I wouldn't have completed projects and met my objectives and performance related pay would have meant no pay rise. I chose to use my car because overall a loss of maybe �20 a week on my car was offeset by a good overall package. But if you feel you are being taken advantage of and don't see any propsects then by all means refuse to use your car (or say it's not available) and accept the consequences of possibly upsetting your employer- or look for another job.
It has been a while but dont you have to pay tax and NI on your petrol claim? I know I worked for a govt office who had dispensation on the first 6000 miles but after that you were taxed and NI'd. Personally, 30p tax free sounds good to me!

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