Company Fuel Tax

copier_guy

Hi,

Just want a second opinion if this sounds like a good deal.

Current Position,

Company car (value £18500), Company fuel card provided with unlimited use and a monthly contribution of £20. I pay company car tax & fuel tax.

Possible new position,

Keep the car (no choice), keep the fuel card but fill in a daily mileage sheet with locations i have been to, pay £30 a month to company which should cover all my private miles, pay no fuel benefit.

Every 12 months my private mileage is worked out, the company may pay me money back or i might have to pay them some more depending on private mileage.

I am a 22% tax payer.

Any ideas?

Thanks

happymumto2

copier_guy wrote: »

Hi,

Just want a second opinion if this sounds like a good deal.

Current Position,

Company car (value £18500), Company fuel card provided with unlimited use and a monthly contribution of £20. I pay company car tax & fuel tax.

Possible new position,

Keep the car (no choice), keep the fuel card but fill in a daily mileage sheet with locations i have been to, pay £30 a month to company which should cover all my private miles, pay no fuel benefit.

Every 12 months my private mileage is worked out, the company may pay me money back or i might have to pay them some more depending on private mileage.

I am a 22% tax payer.

Any ideas?

Thanks

Is a much better deal than you get with the NHS trust I work for! I pay £110 per month for private use of the vehicle (307 SW worth 17k). I get £37 a month towards work fuel (which does not cover the actual fuel used for work), and I pay for all personal fuel. I also pay income tax on the benefit in kind amount! I would say you have a really good deal there.

copier_guy

Wow, cheers mate.

Its unusual to get a good deal from our company there must be a catch somewere, i just cant see it!!!

sarflee

There are advisory fuel rates that the tax office publish, roughly every six months. This shows the minimum amounts that they would expect a company to charge their employees for private mileage. Your employer can of course ask for more than the advisory rates.

Do you know how much they expect you to pay for each private mileage? What adjustment is in your tax code for fuel? You pay 20p for each £1 of the adjustment. So if it says FUEL3000 you would pay 3000 lots of 20p, totalling £600.