Claiming mileage with company car (boring burial it true)

[Only1BabyPigeon]

DH rang the tax office today to discuss something. DH has a company car and is reimbursed 9p per mile for fuel.

Tax office has said he can claim another 34p(I think) per mile even though it's a company car. Is this right? Even though it's a company car? I'm getting really confused reading the gov web site.

He's done over 65000 miles so it sounds like a lot of money owed back if this is true.....which makes me think it isn't.

Anyone know anything?

Tia

*sorry-don't know how boring burial came up

Yes you can but I only think it changes your tax code, you don't get it back in a lump sum I don't think.

But actually maybe not as its a company car.

Forget i said anything

No he cannot claim 45p per mile if it is a company car

The rates are here www.gov.uk/government/publications/advisory-fuel-rates/advisory-fuel-rates-from-1-march-2016 and should be claimed for business miles only - not including travelling to and from his normal place of work

www.gov.uk/tax-relief-for-employees/business-mileage-fuel-costs

That's what I thought ice but this has confused me. We DH has his actual mileage-not to and from work- that's all recorded for claiming back his 9p a mile.

I thought that companies are allowed to pay you x amount per mile before you have to pay taxes on it, but it's up to the company to decide how much

Ie they can pay you 9p a mile if they want to
If they pay you over the tax office threshold (45p?) say 50p, then you have to pay tax on the extra ie the 5p,?

I could be wrong though

I haven't checked recently but there are two bands. One is lower and is for using your company car for business purposes (not inc travel to/from place of work). The higher rate and I think that's 45p, is if you use your own personal car for business travel. The higher rate is to cover wear and tear etc which doesn't matter in a company car. It's an expense so you don't get taxed on it. The cost to the company however IS tax deductible but that's of no concer or interest to your do.