Claiming back petrol expenses paid to employees

[NewBusiness2016]

Employees who use their own car for trips made during the course of business are entitled to 45p per mile (for the first 10,000 miles).

Q1: Does the employer have to pay this expense to the employee or can they claim it from HMRC? If so how do they claim it back?

Q2: If the employer does pay this expense to the employee, can the the employer claim this back from HMRC? If so - how? Is it just an allowable expense?

Thanks
DS

 

[Scalloway]

1. Normally an employer would pay this but the employee can claim it back from HMRC

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

2. If the employer pays it is just another business expense that reduces taxable profit.

 

[Gecko001]

1. Normally an employer would pay this but the employee can claim it back from HMRC

.

To be pedantic, should that not be they can claim tax relief on it and not get the whole amount back as this might imply.

 

[STDFR33]

Yes, they would get tax relief. HMRC are not in the habit of giving away free money.

An employer is under no obligation to pay .45/.25ppm.
An employer can pay more, less, or not at all. What the rate the employer pays may well be written into the contract of employment.