company car and tax

chablisman

help..
I have just started a new job with company car, I'll use a fuel card and make good all private mileage. I am home based and do not have a fixed place of work.
My employer tells me I have to deduct 6 miles from every days business mileage and declare them as "private" for which I'll have to pay 12p per mile. They state that this is for an imaginary office and is for tax reasons.
I can't see how this correct, I've never come across it before, it just look like a way of my new employer collecting £150 a year from me.
As far as I know the tax is calculated on car cost and CO2 emissions level.
Any advice welcome.

number9

There's a lot of useful advice on the HMRC site. Here's the link for the calculator to check that the benefits in your tax code are correct...

http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

...also...If you make good all (100%) of your private fuel then there shouldn't be any charge for car fuel in your code. I'm not sure why your employer should be charging 12p per mile for 6 miles if you're making good all of the private fuel and you are categorically classed as a home worker?? If you have a prescribed place of work, i.e. an office or factory then I could understand why they would perhaps charge you for the home to office element as this is classed as private mileage (you're not undertaking work whilst travelling to the office). HMRC technical guidance from the website : http://www.hmrc.gov.uk/manuals/eimanual/EIM25650.htm explains that the fuel benefit charge is all or nothing and this is most probably why the company is asking you to contribute a home to office amount??

You need to check again with your employer for their explanation of the 12p/6 mile charge to them and also establish that your home is your office in order to counter against this.