Private Car and Company Fuel Card

flier

Hi,

My OH has recently started a new job and has been given a fuel card for use for all his petrol useage. We'd like to know what records we should be keeping and if there, from a tax point of view, is anything else we should know about private mileage and using one of these cards.

I've been looking on the inlandrevenue website, but can't seem to find any info.
He get a tax return to fill in most years and his business mileage will now be alot less than it used to.

Thanks in advance.:o

iaintwoeyes

He needs to talk to his company to find out what to do. There are several options companies can take with regards to tax.

For example I have a fuel card. I pay 9p a mile for private milage each month and submit a detailed record of my total mileage for the month.

Some companies opt for the "all in deal" where all your private mileage is paid for by the company but you will pay more tax through PAYE.

cash99

Keep a record of all business miles as you can claim tax relief on the HMRC approved rates of 40p for up to 10000 miles per annum and 25p thereafter.

Typically the full cost of all the fuel purchased on the fuel card will be recorded as a benefit in kind on the P11D. It will be taxed in full at your highest tax rate.

If you clock up enough business miles you will be due a rebate.

guidarufino

So an employee should either pay the company back for the private mileage they do or they should pay tax & ni on the fuel card but not both? Is that right? My OH has just got a new job, they've given him a fuel card and he's been told he must pay 10p per mile for any private mileage. And there's a tracker in the car so he won't even be able to fudge it, not even a little bit!

Is 10p per mile reasonable? Does that work out cheaper than running your own car? The car they've given him, a Totoya Avensis, doesn't seem to be particularly fuel efficient. I wonder if he could ask them to give him a diesel or something to save costs?

CLAPTON

petrol typically costs 95p per litre which is equivalent to £4.32 per gallon

so if the car does 30mpg then the true price of the petrol alone is 14.4p per mile
if the car does 40mpg then the is 10.79p per mile

so being charged 10 p per mile is a bargain unless OH can average better than 40miles per gallon


why are you concerned about the fuel effficiency.. you are paying 10 per mile whatever the actual cost?

guidarufino

I'm concerned about the fuel efficiency for environmental reasons. I run a very modest 1.3 Ka which is fantastic on petrol. Now he's had his new car for a bit, he says you can almost see the fuel gauge going down as you drive along. But he's defo getting a bargain on the whole 10p a mile thing, fair enough. Thanks

cownet

CLAPTON wrote: »

petrol typically costs 95p per litre which is equivalent to £4.32 per gallon

so if the car does 30mpg then the true price of the petrol alone is 14.4p per mile
if the car does 40mpg then the is 10.79p per mile
so being charged 10 p per mile is a bargain unless OH can average better than 40miles per gallon
why are you concerned about the fuel effficiency.. you are paying 10 per mile whatever the actual cost?

Sorry if I am resurrecting an old thread or if this has been answered before,(easy link if it has)

But how does this work out...

or if you like, use a real example on me.

I am opted out of both car and fuel.

For Fuel I get £175 pcm and on my workings at %40 TAx thats about £105 pcm in my pocket

I drive a 2Ltr Diesel that does on average ( lead foot) 35 mpg

I do around 1000 business miles a year

I used to always say I was better off taking the cash but with fuel the cost it is now i am not so sure, so in or out?

Thanks

cownet

Anyone? please

cownet

jimmo wrote: »

Do you need to take a look at your figures again? If you are being paid £2,100 p.a. for doing 1000 miles …..

Thanks for looking Jimmo. I don't think I need to re look at figures but maybe they are a tad misleading.

I get £175 per month regardless of miles as a cash alternative to taking the fuel card.

This get paid as part of my salary and taxed at 40%

If I take the fuel card then I woul loose this money and then get taxed at 40% of the fuel I use that is not business.

I think I am better taking the cash but every time it comes up everyone says the card is better?

With Fuel on the increase, am I better keeping the cask or going for the card?

CLAPTON

you need to say what private miles you do to work this out.

cownet

CLAPTON wrote: »

you need to say what private miles you do to work this out.

Hi, I think for the coming year, my business miles is going to increase to about 2500 and my private mileage will stay about the same 14000 miles