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  • FIRST POST
    • simmo0020
    • By simmo0020 16th Oct 16, 12:09 PM
    • 7Posts
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    simmo0020
    Fuel Reimbursement- which is my best option
    • #1
    • 16th Oct 16, 12:09 PM
    Fuel Reimbursement- which is my best option 16th Oct 16 at 12:09 PM
    I'm negotiating a new deal and have been offered essentially 2 options for fuel reimbursement for travelling I have to do for site visits etc. I drive a 2.0 diesel car, averages 45mpg.

    1 - Pay for fuel myself and then claim back 10p per mile at the end of each month. (I understand I can then claim tax relief on the difference between that and 45p)

    2. - Use a company credit card to pay for the fuel when I am travelling on business. (Can I then claim tax relief on this?)

    I'm a basic rate tax payer, married, not sure if any of that makes a difference or not.

    Which option will I be best off taking? I'm attracted to option 2 so that I am not having to fork out for the fuel out of my own pocket and wait for it to be reimbursed but obviously I want to do what is best financially long term.
Page 1
    • Darksparkle
    • By Darksparkle 16th Oct 16, 12:34 PM
    • 3,385 Posts
    • 2,105 Thanks
    Darksparkle
    • #2
    • 16th Oct 16, 12:34 PM
    • #2
    • 16th Oct 16, 12:34 PM
    Is it a company car or a personal car?

    How many business/personal miles are you likely to do?
    • simmo0020
    • By simmo0020 16th Oct 16, 12:39 PM
    • 7 Posts
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    simmo0020
    • #3
    • 16th Oct 16, 12:39 PM
    • #3
    • 16th Oct 16, 12:39 PM
    Sorry should have said

    Personal car, approx 7-10k business per annum, personal approx 5k per annum
    • getmore4less
    • By getmore4less 17th Oct 16, 8:19 AM
    • 26,239 Posts
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    getmore4less
    • #4
    • 17th Oct 16, 8:19 AM
    • #4
    • 17th Oct 16, 8:19 AM
    Personal car 10ppm

    tell them to get lost and provide transport.

    no where near enough to cover the costs you will be subsidizing the travel.

    (or have you forgot to tell you get a car allowances as well?)
    • simmo0020
    • By simmo0020 17th Oct 16, 8:25 AM
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    simmo0020
    • #5
    • 17th Oct 16, 8:25 AM
    • #5
    • 17th Oct 16, 8:25 AM
    Sorry yes I'm really terrible at this lol

    I get a £6k a year car allowance.

    I'm solely interested in knowing which method of buying the fuel is best
    • getmore4less
    • By getmore4less 17th Oct 16, 8:31 AM
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    getmore4less
    • #6
    • 17th Oct 16, 8:31 AM
    • #6
    • 17th Oct 16, 8:31 AM
    10ppm 45mpg.

    1ltr is 0.219969gal

    1ltr does 9.8986 miles

    if the price is over 99ppl take the card.


    edit :

    add the 20% tax relief on 35p, another 7p
    that makes the break even £1.68pl

    so depends on the tax relief available if any on the fuel card.
    Last edited by getmore4less; 17-10-2016 at 9:15 AM.
    • simmo0020
    • By simmo0020 17th Oct 16, 8:35 AM
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    simmo0020
    • #7
    • 17th Oct 16, 8:35 AM
    • #7
    • 17th Oct 16, 8:35 AM
    So take the card, I can then claim 45p per mile in tax relief at year end up to 10,000 business miles then 25p after 10k is that correct?

    That means I should get £900 in tax relief if I do 10k business miles?
    • getmore4less
    • By getmore4less 17th Oct 16, 9:05 AM
    • 26,239 Posts
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    getmore4less
    • #8
    • 17th Oct 16, 9:05 AM
    • #8
    • 17th Oct 16, 9:05 AM
    you will have to check the tax situation for a fuel card.

    I think it depends on how you account for the fuel used for private mileage

    I also suspect if you have a fuel card you can't then claim the tax relief on the business miles.

    if that is the case you need to adjust the break even cost per litre.

    you need to have a good read of the HMRC rules on this with using a fuel card
    Advisory Fuel Rates
    Approved Mileage Allowance Payments

    edit:
    added the tax relieve in previous post for the AMAP.
    Last edited by getmore4less; 17-10-2016 at 9:16 AM.
    • redpete
    • By redpete 19th Oct 16, 3:55 PM
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    redpete
    • #9
    • 19th Oct 16, 3:55 PM
    • #9
    • 19th Oct 16, 3:55 PM
    Presumably the company pays the bill directly if you use the company credit card, so no additional tax relief for you on that.

    Not sure that I'd like to have to differentiate whether I'm filling the car with diesel for business or private use in order to decide whether or not to use the company card.

    Taking all mileage-related costs into account (fuel, tyres, servicing, depreciation) I reckon it costs me 22.5 pence/mile for a similar car. I currently get 11 pence per mile in expenses, with the tax relief as a 40% tax payer I get slightly above this so the car allowance is profit.
    loose does not rhyme with choose but lose does and is the word you meant to write.
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