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Anyone have a company fuel card for a private vehicle?
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emeraldbugle
Posts: 1,063 Forumite
in Cutting tax
Is this possible?
Would you be taxed on the CO2 value of the private car? Or would they add up your spend for the year and tax you on the private element of that?
Would you be taxed on the CO2 value of the private car? Or would they add up your spend for the year and tax you on the private element of that?
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emeraldbugle wrote: »Is this possible?
Yes
Would you be taxed on the CO2 value of the private car?
No - you are not provided with a car, so no car benefit.
You would have a benefit reported on the basis of the full cost to your employer of the fuel provided for your car. You would be able to claim tax relief for your business mileage at 40p per mile for the first 10,000 miles and 25p per mile thereafter.0 -
You would have a benefit reported on the basis of the full cost to your employer of the fuel provided for your car. You would be able to claim tax relief for your business mileage at 40p per mile for the first 10,000 miles and 25p per mile thereafter.
As an example in easy numbers, if my fuel costs were £1175 for the year inclusive of VAT.
Would I be taxed on the net value of £1000 or gross £1175?
Can the employer claim the VAT back of £175?
Then I could claim the relief for business miles.0 -
See para 25.12 of booklet 480 http://www.hmrc.gov.uk/guidance/480.pdf VAT should be included in calculating the amount of the benefit. So in your example, you would pay tax on a benefit of £1,175.
Someone more expert than I as regards VAT will be able to answer your question on reclaiming VAT.0 -
I don't think this correct.You would be able to claim tax relief for your business mileage at 40p per mile for the first 10,000 miles and 25p per mile thereafter.
I'm in exactly this position this year (private car, company provided fuel card). I'm being taxed on the fuel provided via 2010/11 coding notice. I thought you could claim back the element that was business miles via tax return - the inland revenue help desk were adamant that you cannot - and the whole lot will be taxed as a benefit in kind.0 -
You are already being taxed on the fuel though you BIK so you can't be taxed on it twice.
You can claim tax relief on this at 40p a mile for the first 10,000 miles and 25p a mile thereafter.0 -
Sorry I probably wasn't clear enough.
For 08/09 I had a P11D entry relating to fuel card expense.
On the self assessment tax return completed in Jan (i.e for 08/09 fy) this was entered as a benefit in kind. I claimed tax relief for business miles driven @ 40p/mile.
However on the coding notice received they have included the full P11D fuel amount. So despite claiming a tax relief for business miles I'm now going to be taxed 40% on the whole amount.
Or have I misunderstood something here.0 -
The amount for the BIK on your 10/11 code.......did it say that it relates to a previous year/underpayment, or could it be an estimate of what they think the benefit will be in 10/11? And they just haven't deducted anything for your possible mileage claim.
What happened in 09/10?
In the past I have found that while they code for benefits, they are less willing to code for expenses claimed.
Before he retired in 2007, my husband had pretty much all his fuel paid for by his employer. Not through a Fuel Card but by him claiming it along with other expenses.
At the end of the year I would work out the claim for his business mileage on the 40/25p basis, enter the money received from employer as a benefit and the business mileage as an expense and reclaim the tax (his private mileage was low so the 40/25p amount was always more than he had received for fuel)
I don't see how this is essentially any different from having a fuel card.0 -
Your notice of coding and your tax return relate to different tax years.
In your 08/09 return you claimed for the tax relief and got it, in 09/10 you should do the same. Your notice of coding is for the 10/11 tax year, likewise you should claim the relief after the tax year is completed.
HMRC will charge you through your tax code for the fuel card in the current year but you can't claim tax relief until it's completed - don't expect a tax code adjustment for future miles, if you get on it will certainly be wrong.0 -
emeraldbugle wrote: »As an example in easy numbers, if my fuel costs were £1175 for the year inclusive of VAT.
Would I be taxed on the net value of £1000 or gross £1175?
Can the employer claim the VAT back of £175?
Then I could claim the relief for business miles.
Anyone know the answer to that one?0 -
The gross figure.0
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