Tax mans says "Go whistle"!!!

Topmark

I provide my own car for business
Employer gives me a fuel card to allow me to fill it.

Tax man says |"Aha, because your employer gives you a fuel card, you can't claim Mileage relief on the first 10,000 miles at 40p and any more than 10k at 25p"

Is this right?

My employers fuel card only covers the precise amount of fuel put in at the filling station. IE if it's 50 pound to fill then that's what get debited from the card and the employer picks up the bill directly.

But surely I can still claim for the mileage relief?

TM1976

You should be taxed on the benefit in kind of getting your fuel paid for.

However you can claim the relief at the full 40p because you provide the car and the fuel. You must be taxed on the fuel card though.

Topmark

Thanks TM (Same Initials!)

I always provided my private own fuel and only used the fuel card for business mileage, so will I still be tax liable and if so for what and why?

fengirl_2

You cannot possiby separate out private and business fuel. There will always be a residue of business fuel in the tank when you set off on a private journey and vice versa. For this reason, I think the fuel is a benefit in kiind and should be taxed, anabling you to claim the full 40p/25p tax relief on running the car.

toby3000

I believe your employer should provide you with a P11D form (benefits in kind) for the fuel card they are providing? Not 100% on this

TM1976

Because of the way this is structured you will be liable for a taxable benefit in kind whether your employer pays 50% or 100% of the fuel. You are probably losing out tax wise because of this.

You would be better off if you charged your employer for fuel on a per mile basis and paid yourself.