Company Car/Fuel Tax

XDA

I am about to start a new job with gives me a company car and a fuel card. Im aware of the company car tax rules etc, however im unsure about the private mileage side of things.

Is there anyway of reducing tax on private miles? I would probably only do 5k private a year. I will be issued with a fuel card.

Any help much appreciated.

Bean_Counter

You could keep a mileage log and then reimburse your employer all private miles at HMRC to avoid the fuel element of the tax charge.

Really just a case of doing the sums to see what is most efficient for you.

Any

Speak to your employer. Basically there are 2 ways to go on about fuel:

a/ just drive around not worrying about anything and pay tax
b/ keep record of your miles and now there are 2 ways again
- either submitt business mileage every month, stating mileage on your car on beginning of the period, then input your business miles (from where to where did you go and how many miles it was) and on the bottom of the page state mileage on your car at the end of period and input formulae to calculate next line "private mileage"(final mileage-beginning mileage-business journies = private mileage). Submitt to your employer.
- or keep record of all mileage
Your employer then will deduct some £ for your private mileage - rates are stated by HMRC and depends on the type of vehicle.
If you do this you don't need to pay tax on fuel.

Every employer has different rules and spreadsheets for keeping business/private mileage and claiming private mileage from you.

You need to speak to your employer and clarify what system does he operate.

Money_Grabber13579

You will need to reimburse your employer for all your private miles, otherwise you'll get hit with the fuel scale charge assessed on a benefit of £16900. You would also have to pay a VAT fuel scale charge if the company is VAT registered.

You'll probably be aware of this, but it sometimes can be a lot cheaper to buy the car from your employer and get them to pay you for your business mileage and make a contributuion toward the car, which can be tax free up to a certain amount.