Tax rebate on car payments over allowance?

A question about : Tax rebate on car payments over allowance?

Hi,

I currently have a company car which costs more per month than the allowance my company provides. Am I eligible for a tax rebate on the extra that I contribute?

Thanks.

Best answers:

• Do you have a company car or do you use your own car and get paid a car allowance?
  Or:
  Do you have a company car and get paid a mileage allowance which you consider insufficient?
  I am not at all sure which.
• I have a company car for business and personal use. The company pays mileage for work-related journeys only. The mileage allowance is not an issue. I am concerned that I should let HRMC know that I contribute towards the company car's monthly payments.
  Thanks
• I have never come across this arrangement but, if the car is leased and your contributions come out of net pay, I believe that you can have the benefit reduced by the repayment amount. However, I am somewhat removed from this now - hopefully some of the other people on here are more current.
• I had a company car, my company paid for all my petrol, but I got taxed heavily on my petrol. May have been better to do the mileage method.
• there is provision on the SE form to enter a 'capital contribution'
  basically as already explained (dori20), if you choose (or have to pay) something towards the car, the amount is deducted from the taxable value of the benefit.
  This often occurs because employees choose a better specification than the company will finance but allow the employee to pay the difference
  As the basic tax (benefit in kind) is worked out on the actual car, then HMRC allow an adjustment to reflect the employees payment (is is only reasonable)
  it has nothing to do will fuel allowance or mileage allowances
• Thanks very much for your responses. I contacted HMRC today and they confirmed that the P11D should show a figure under 'Private Use Contribution' if you pay anything over and above your company's allowance. For me this was the issue, my company had not supplied them the correct information. This will now reduce my tax liability.