Not the usual company Car taxation question - help please

69nigel

Hello everyone,
Would appreciate some help as I dont seem to be able to get a definitive answer.....

I have a car allowance added to my salary to purchase a car (£4k). I also receive the 45p per mile for business use, although I do very little business mileage.

Heres the question....we have been given a petrol card for business and personal use and therefore will be taxed accordingly as benefit in kind. How much do I now claim per mile for business use, as the 45p is for wear,tear,depreciation, etc & fuel (so i believe). So, now I get fuel card, do I charge 28p mile ????? Is there a set figure ?

Also, bear in mind I partly run this business, so I can pay myself what I like but I dont want to fall foul of tax man or even unduly rob my own company.

Thankyou in advance

Wonka_2

Whoa there - I wouldn't be spending too much on the fuel card if I were you until you've established it's validity and the implications.

Fuel cards would normally (but not exclusively) be given to those with Company cars (not those that have opted out) and it is taxed alongside the company car taxation.

If you've opted out and have received an allowance (i.e. the 45p you quote) this is considered as full recompense for fuel, wear and tear etc

Suggest you read this

http://www.hmrc.gov.uk/mileage/employee-factsheet.pdf

69nigel

Thanks Wonka...

Like you say the 45p is for fuel, wear, tear etc. I dont have to pay for fuel, so how much can I claim ???

I feel I must be missing something here, cos to me the question seems really simple ? :eek:

BoGoF

You still claim the appropriate AMAP rates for your business mileage (45/25 ppm) as normal.

Your employer will report the total cash equivalent of the fuel card on the P11d any you claim your business mileage as usual.

katz03

How we do it at our workplace is we charge the reps fully the cost fuel purchased on the fuel card, and then they put in a claim for business mileage incurred in the month - this means that all personal mileage has been paid for by the reps and there is no benefit in kind.

Hope this helps.

69nigel

Thanks BoGoF......

Sorry to sound a bit thick.. but I was under the impression that there was a set figure for the amount of benefit in kind for fuel card for private mileage ? Are you basically saying that our accountant will work out how much Ive used for private mileage and then I will be taxed on that ?

BoGoF

69nigel wrote: »

Thanks BoGoF......

Sorry to sound a bit thick.. but I was under the impression that there was a set figure for the amount of benefit in kind for fuel card for private mileage ? Are you basically saying that our accountant will work out how much Ive used for private mileage and then I will be taxed on that ?

You have a fuel card for business/private fuel. Say you spend £3000 on said card in the tax year, the £3000 is the taxable benefit. You then claim tax relief on the business element as normal using the AMAP rates.

69nigel

we decided to have the fuel card with private mileage included as a perk btw .......

69nigel

so,

basically it will cost me £3000 @ 25% = £750 / 12 = £62.00 per month
roughly speaking.....

BoGoF

If you are a basic rate taxpayer £3000 @ 20% = £600, so £50 per month. But then you will claim tax relief on business miles so it will be less than that in reality.

69nigel

thanks BoGof...panicked for a bit but i still think its a worthwhile perk.