Tax on company petrol card for private car.

scope

spoonz wrote:

i opted out of the fuel card.

I now claim 12p per mile expenses for business and then tax relief on the 28p difference. Works out better for me that way as I do little mileage.

I assume your petrol card did not include private petrol then? If it did then with the petrol card the petrol would only cost you 40% of the pump price, now you are paying 100%.

boinging_2

scope wrote:

I assume your petrol card did not include private petrol then? If it did then with the petrol card the petrol would only cost you 40% of the pump price, now you are paying 100%.

I'm in the same situation and you are right in saying that by opting in to all fuel being paid for your private mileage is at 40% of pump cost.

I.e. you spend £2000 a year on the fuel card which will cost you tax of £800 at 40%. However if you did 12,000 business miles during the year you could claim back tax relief of 40p for 10,000 miles and 25p for 2,000 miles = £4500.

With a private car and fuel card there are no circumstances where I can think you would be worse off. Be careful of excepting a fuel card for a company car as you are benefit in kind taxed at a sliding scale (similar to the car itself). Phew....

Towzer_2

I've just filled in my online tax return but can't work out where I fill in 40% of the fuel used. According to my P11D I have petrol card (box 1.22) expenses of £1780.

This equates to the full amount I spent at petrol stations over the year, it also roughly translates to my annual mileage. On this basis there's no point in me having a fuel card.

If I've read this thread correctly, then I should only be paying tax on 40% of the £1780, ie I owe the tax man £712. From there I then claim back my business mileage at 40p per mile.

Where on the online form do I enter the £712?

Thanks,

Phil

jennifernil

If you are talking about using your own car then you are allowed to have 40p per business mile (up to 10000) taxfree. So work out your business miles, multiply by the 40p, and subtract this from the £1780. This remaining amount is the benefit you have received and will be taxed on. Don't know the box number , but I put it where it asks about expenses payments received. If your answer is negative then you have an expenses claim. That is a different box.

e.g. if you drove a total of say 12000 miles of which 4000 were on business then you can have 40p x 4000 = £1600
So you would be taxed on £180

If you drove 6000 miles on business then you can have 40p x 6000 = £2400
so you could claim tax relief on an additional £620.

If it is a company car then ignore this.

boinging_2

Towzer wrote:

I've just filled in my online tax return but can't work out where I fill in 40% of the fuel used. According to my P11D I have petrol card (box 1.22) expenses of £1780.

This equates to the full amount I spent at petrol stations over the year, it also roughly translates to my annual mileage. On this basis there's no point in me having a fuel card.

If I've read this thread correctly, then I should only be paying tax on 40% of the £1780, ie I owe the tax man £712. From there I then claim back my business mileage at 40p per mile.

Where on the online form do I enter the £712?

Thanks,

Phil

The PD11 value is the amount you have spent on the card, in effect the fuel card is classed as extra salary. So you will owe your tax level back on this money (at 22% or 40%). However via the P87 form you can claim back tax relief on the business miles you do at the 40p and 25p level. Depending upon circumstances the tax man will a) pay you a cheque for the money or b) adjust your tax code for this coming tax year to allow for this extra money to be picked up in your monthly salary.

The benefit of having the card is you are only paying tax of 40% on petrol you bought for personal use! i.e. £1.00 worth of fuel is in effect costing you 40p! For the business fuel say £1.00 will allow you to do 10 miles you are claiming back (at 40p rate) £4.00 for the 10 miles (which you are only being taxed 40p for) which you can claim relief of £1.60 of the £4.00. Thus net gain of £1.20 per 10 miles.

Towzer_2

Thanks for the advice, it makes sense now.

Phil

TKP_3

Hi, does travelling to and from work count as business miles?

scope

TKP wrote:

Hi, does travelling to and from work count as business miles?

Not if it is your normal place of work (office). If you travel to clients, etc, then yes, it is business miles.