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Reimburse employer for private mileage fuel
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# 1
mikeyboy
Old 11-04-2011, 6:46 PM
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Default Reimburse employer for private mileage fuel

Hi,

I have a company car along with a fuel card which all fuel is paid for with.

I have opted out of having personal fuel paid for so I complete a log book each day, separating business and personal miles.

I need to reimburse my employer for the personal miles for the 2010/11 tax year.

What rate do I use for the calculation? The AFR?

Thanks
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# 2
mikeyboy
Old 11-04-2011, 7:42 PM
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Would I be right in thinking I take it from here...

http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm


In my case a 1.9 diesel is 13p per mile I repay?

Thanks
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# 3
dori2o
Old 11-04-2011, 8:05 PM
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if you are supplied with a fuel card you must reimburse the employer every penny spent to be free of the benefit charge not just the private mileage.
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# 4
AIFOP
Old 11-04-2011, 8:36 PM
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Default Reimbursement of employer for private mileage

hope this helps?

Extract from HMRC website in respect to HMRC advisory fuel rates (sorry as a 'new user' I can not upload weblinks)

Employers who require employees to repay the cost of fuel used for private travel

Providing that all of the miles of private travel have been properly identified, HMRC will accept that there is no fuel benefit charge, and therefore no Class 1A NICs liability, where the employer uses the appropriate rate from the current table (or any higher rate) to work out the cost of fuel used for private travel that the employee must repay to the employer.
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# 5
mikeyboy
Old 11-04-2011, 9:11 PM
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Thanks,

So if I use the rate from HMRC, I.e. 13p per mile in my case I will be ok?

Eg, if I did 100 miles I would pay 100 x 13p £13.00???


I am confused as to if it is just this, or should I be paying the amount actually spent on the fuel card? But this obviously varies as prices change etc, so almost impossible to calculate at-the end of the year.
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# 6
mikeyboy
Old 11-04-2011, 9:14 PM
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Quote:
Originally Posted by dori2o View Post
if you are supplied with a fuel card you must reimburse the employer every penny spent to be free of the benefit charge not just the private mileage.
Can anybody confirm if this is correct as it appears to go against what I thought was the situation.

I was under the impression that provided an accurate mileage log is kept and it clearly separates business and personal miles it is simply a case of reimbursing employer at end of the year.

Only if the card issued is used and personal miles not refunded would it become a tax issue?

Please can someone provide some clarity?

Thanks
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# 7
taxsaver
Old 11-04-2011, 10:21 PM
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Yes, you are correct and dori2o is incorrect.
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# 8
mikeyboy
Old 11-04-2011, 10:41 PM
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Quote:
Originally Posted by taxsaver View Post
Yes, you are correct and dori2o is incorrect.
Many thanks for confirming things
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# 9
AIFOP
Old 12-04-2011, 7:07 AM
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Mikeyboy,

The use of HMRC advisory fuel rates is the first port of call. However, if you can prove a different rate (pro-rata fuel card costs between private and business mileage) you could use this rate per mile.

I would suggest that you use whatever is better for you, keep the appropriate records and be consistent.
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# 10
Bean Counter
Old 12-04-2011, 7:15 AM
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Quote:
Originally Posted by mikeyboy View Post
Can anybody confirm if this is correct as it appears to go against what I thought was the situation.

I was under the impression that provided an accurate mileage log is kept and it clearly separates business and personal miles it is simply a case of reimbursing employer at end of the year.

Only if the card issued is used and personal miles not refunded would it become a tax issue?

Please can someone provide some clarity?

Thanks
This is what we did for a fuel card holders for those who wish to avoid the fuel BiK charge, using the rates referred to above.

We had a recent visit form HMRC who looked at this and they seemed happy with it.
Today is the first day of the rest of your life
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