Car Allowance with a fuel card

Doughmaker

Any help appreciated..
I have recently got a new job.
As part of my package I have a £6000 Car allowance and also a fuel card which can be used for business and personal miles.
I assume I just buy whatever car I fancy and the £6000 will be added to my top line salary each month and taxed at my marginal tax rate.
However I am not sure how my fuel card will be taxed.
I have had a fuel card before but that was with a company car and I am familiar with the tax setup in that circumstance.

Does anyone know how I will be taxed in my new circumstance?
Does it matter what car I drive? eg CO2 % etc??


Thanks in advance..

Cpt.Scarlet

It's classed as a benefit in kind. The total for your fuel usage during the tax year will be added to your P11D, you can claim a deduction for any business miles that you do and pay tax on the rest.

real1314

Hmm, if it was fuel on an actual company car it would be based on the CO2 rating / fuel type.

In this case, the £6k is added to salary, so the car is effectively a personal vehicle.

On that basis you should be able to claim business miles at 45p for the first 10,000; then 25p after that. I doubt if your fuel card will actually reach that level even with private miles, so you may even get a tax rebate.

You'd be better off posting this on the tax board though as people might be more familiar with this scenario. :cool:

withabix

Re-posted and answered here:

https://forums.moneysavingexpert.com/discussion/4071695