Company Car

Wilk

Hi after a bit of advice please.

I start a new job and will be getting a company car and get a fueal card but I have 2 options regarding fuel.
1st option company will pay for business and personal and I get taxed by the government for this
2nd option business provision only and fill in forms for business trips and pay company back at 0.09p per mile.

Any advice would be much appreciated

jimmo

Option 1 will involve you paying tax on the car fuel benefit scale charge. The amount of the charge depends on the car’s CO2 emissions.

If you do lots of private miles this could be for you but if you do very few private miles it could prove expensive.

Option 2 makes your employer seem a bit miserly compared to the HMRC approved rates.

http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

I fear you have a bit of homework to do and if so, this may be a good starting point.

http://www.hmrc.gov.uk/helpsheets/hs203.pdf

getmore4less

9p a mile on £1.40pl is 70(ish) mpg

bargain

Will depend on the numbers but only paying back 9p per mile is a deal.

paulus

The advisory rates can be used for employees either claiming business miles or repaying private miles. If a fuel card is used and a 9p rate is used to repay private miles it may be that this is inadequate. The fuel tax applies if all private fuel is not made good. If you opt for no tax it's worth checking how the 9p hs been arrived at.

CKhalvashi

paulus wrote: »

The advisory rates can be used for employees either claiming business miles or repaying private miles. If a fuel card is used and a 9p rate is used to repay private miles it may be that this is inadequate. The fuel tax applies if all private fuel is not made good. If you opt for no tax it's worth checking how the 9p hs been arrived at.

We run on 13p per mile, as HMRC publish an advisory rate for claiming back petrol at £13 per 100 miles claimed. This should technically be seen as accurate on the other side of the coin.

I know that our two (2.2 and 3.0) diesel cars cost about this to run, and there's a slight tax advantage if I use the CL (6.0 petrol) for work, which isn't often as running it isn't very MSE!

CK

Wilk

Thanks all.
I think I may go with option 2 after a bit of thought

real1314

Wilk wrote: »

Thanks all.
I think I may go with option 2 after a bit of thought

If HMRC don't accept the 9p a mile refund rate you could end up with a fuel scale charge anyway. :cool: