Taxation on Fuel for company mileage

The item of confusing is related to where to claim mileage from, or the calculations for mileage... ie. A....B.....C I live a "B", work at "C" and have a project based at "A". I leave home "B" and drive straight to "A". The current policy states I have to deduct mileage from home to my normal place of work from the mileage claim to "A" My employer states that this is due to "Customs and Revenue rules".

However, I've been told varying things by different people... Can anyone clarify the IR position on this?

Thanks! Jason

Is probably a good place to start :-)

Yes. See:

Probably.

No it isn't. If C is your permanent workplace and A is genuinely a temporary workplace (ie you're not there for more than a few months IIRC), and A and C aren't close together (eg offices in the same town), then the *whole* of the mileage from B to A is business mileage. Even if it's less than your normal commute. See:

Of course those are IR rules, your company may still insist you deduct commuting mileage from your expense claim - but if they do you can claim tax relief on the difference between what the IR allow and what your employer pays.

Have I got this right. The company owns a car which you drive for business. You buy the petrol and recover the cost from the firm by a making a 12p per mile claim for business miles, so less than 36 mpg and you will lose money.

That, IME, is a bit of a non-standard arrangement. I can't see why you should take a loss if the car's fuel consumption increases for any reason (say because the sites you are driving to happen to be in congested locations). It's more common for the firm to pay all the petrol bills, recover the VAT and you pay them a standard rate for private mileage.

Do you have the use of the car for private journeys? If so do you realise that there will be quite a big income tax charge for the benefit -in -kind, particularly if it's the 206 gm/Km 16v turbo.

AFAIAA that is corrrect.

HTH.

DG

Nope. People often share lifts into work, or buy a season ticket etc, therefore the IR allow any home to "temporary" workplace journey as business mileage unless it is "substantially" the normal commute (ie about the same distance and same direction). This applies even if it actually costs less than the normal commute, and even if the normal workplace is passed on the way! See the examples in the links I posted.

Yep - its a traditional company car, so I use it for personal mileage too.

Yep -I'm paying about £100 tax/month. However, the car is pretty old and has done high mileage, but thats another issue.....

Thanks for your comments!