Question on claiming petrol costs?

[HappyHippyDad]

Just having a confusing moment over claiming petrol costs!

I was under the impression that I could claim for my van insurance, tax, mot, tyre changes etc AND my petrol costs at whatever rate the government is paying during that financial year. However, am I right in thinking there are 2 ways of claiming for vehicle costs?

1) Simplified expenses : Calculate your car, van or motorcycle expenses using a flat rate for mileage instead of the actual costs of buying and running your vehicle, eg insurance, repairs, servicing, fuel.
2) Full cost method : claim for every individual incurred relating to van.

As above I thought I could claim for all the running costs AND then use the flat petrol rate to work out how much to claim back for petrol. Is this correct or should I be claiming the petrol costs based on exactly how much I have paid for petrol (if using full cost method)?

 

[Richard Burns]

Best to check with HMRC website directly, but as far as I am aware you must use either simplified expenses or full cost method.
So if you are claiming flat rate expenses on vehicle costs, this flat rate covers all your expenditure on the vehicle.
If you are claiming full cost method then you detail all the costs of the vehicle and claim that cost as expenses.
(subject to private use reduction in all case)

Is there a flat rate for petrol only?
I thought the flat rate was total vehicle expenditure, but I only use full cost method so I have not checked.

 

[Octopus]

I've always charged fuel separately to the "other" vehicle costs. My accountant has never commented about how I do it - so I guess its OK!

 

[HappyHippyDad]

I've always charged fuel separately to the "other" vehicle costs. My accountant has never commented about how I do it - so I guess its OK!

Do you calculate your petrol costs by adding up all your receipts Murdoch or by using 45p per mile?

 

[HappyHippyDad]

Best to check with HMRC website directly, but as far as I am aware you must use either simplified expenses or full cost method.
So if you are claiming flat rate expenses on vehicle costs, this flat rate covers all your expenditure on the vehicle.
If you are claiming full cost method then you detail all the costs of the vehicle and claim that cost as expenses.
(subject to private use reduction in all case)

Is there a flat rate for petrol only?
I thought the flat rate was total vehicle expenditure, but I only use full cost method so I have not checked.

That does seem to be what its saying doesn't it Richard. I think I shall just stick with the 45p/mile for this year seeing as though I have no petrol receipts.

 

[Octopus]

Do you calculate your petrol costs by adding up all your receipts Murdoch or by using 45p per mile?

"actual" costs based on 35 mpg (my work vehicle is also our family mini bus when required)

 

[telectrix]

the 45p/mile allowance is to cover all costs, not just fuel.

 

[Octopus]

the 45p/mile allowance is to cover all costs, not just fuel.

If I remember correctly, once you start claiming using one "method", you can't change until you change your vehicle.

 

[hightower]

If I remember correctly, once you start claiming using one "method", you can't change until you change your vehicle.

Correct. So if you've been in business for a couple of years, HHD, with the same van you'll have to continue using whatever method you used last year I'm afraid.

I've opted for the simple method which I think pays better the fewer business miles you do (and is easier to keep track of). If you're doing lots of business miles or your van is 100% business use then I think the complex method would be better.

 

[Deleted member 26818]

The 45p per mile is for using your private vehicle for business use, not for using a company vehicle.
The 45p goes towards paying for fuel, wear and tear, insurance, tax and maintenance.
Where a vehicle is used solely for business use, then all costs incurred should be claimed.

 

[hightower]

The 45p per mile is for using your private vehicle for business use, not for using a company vehicle.
The 45p goes towards paying for fuel, wear and tear, insurance, tax and maintenance.
Where a vehicle is used solely for business use, then all costs incurred should be claimed.

Erm no, you can definitely use the 45p per mile rule for a company vehicle too. It's ideal for sole traders who just want a quick and easy way to work out what they can claim - keep a mileage log book, add it up at end of year, job done.

 

[Octopus]

Erm no, you can definitely use the 45p per mile rule for a company vehicle too. It's ideal for sole traders who just want a quick and easy way to work out what they can claim - keep a mileage log book, add it up at end of year, job done.

Isn't the 45p per mile then it's a lower rate?

 

[HandySparks]

It's either the standard mileage rate or the actual costs, not a combination of both. BTW, if you've already claimed a capital allowance for buying the van, then the mileage rate may not be useable.

Just looked it up: you have to use one method for the whole time you're using the vehicle:
https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles-

Not read round this recently, so check for yourself.


Why would you not have fuel receipts for a van, like you would for servicing, tyres, etc.? Surely it's just another of the many costs of doing business?

 

[HappyHippyDad]

It's either the standard mileage rate or the actual costs, not a combination of both. BTW, if you've already claimed a capital allowance for buying the van, then the mileage rate may not be useable.

Just looked it up: you have to use one method for the whole time you're using the vehicle:
https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles-

Not read round this recently, so check for yourself.


Why would you not have fuel receipts for a van, like you would for servicing, tyres, etc.? Surely it's just another of the many costs of doing business?

I guess it would be if you were doing the 'full cost method', but if you were doing the 45p/mile method then all you need is a record of your journey's not your fuel receipts.

 

[hightower]

As HHD has said, I don't bother keeping any receipts for my vehicle - fuel, servicing, repairs etc. They have no use in the 45p a mile method as far as I can see, you just need to keep a log of the business miles you do (which I've made a spreadsheet for if anyone is interested in using)

 

[Deleted member 26818]

The other thing with the 45p rate, is that it is only for the first 10,000 miles, it then drops to 25p.

 

[Richard Burns]

If you are claiming 45p/mile for your fuel and then claiming individual expenses for your car insurance, tax, repairs, servicing etc. then you are majorly ripping off the system.

A car on a low number of miles per year costs about £1.00 per mile (may be out of date now) to actually run if all costs are considered.
Because the tax, MOT, insurance, etc. are fixed annual costs not related to the mileage the more miles you do the cheaper it is per mile to run the vehicle.
If you are doing a lot of miles, I think it is over 20,000 per year, then the simplified expenses is worthwhile, if you are doing only 5,000 miles per year then actual costs should be better for you.

 

[Risteard]

If I remember correctly, once you start claiming using one "method", you can't change until you change your vehicle.

You are 100% correct. You must continue using whichever system you started with for the vehicle.

And it isn't 45p per mile. It is 45p per mile for the first 10,000 miles in the fiscal year and then only 25p per mile thereafter.

 

[Dynamoaccounts]

Erm no, you can definitely use the 45p per mile rule for a company vehicle too. It's ideal for sole traders who just want a quick and easy way to work out what they can claim - keep a mileage log book, add it up at end of year, job done.

Hi there,if it's a company owned vehicle then the rates are reduced.

Company Car Rates

You can change the rates but only when change the vehicle, once set down one path should use it until change. The mileage rates is quick and easy to calculate but it's best to check at the end of the tax year which is best to use for your circumstances, weigh up both methods and use which is best for your circumstances.