company car and private miles

pinkhat

I. Would like to ask for advice as to where I should direct an old work colleague.
We worked together between 07_09 and.at the time worked for a large company for which we had company cars and fuel cards.

A discussion 2 nights ago revealed that my old colleague did not always submit private miles travelled within the car. I have had the morality talk with them about this but would now want to give practicle direction. Having googled a few sites the whole sittuation has me even more confused than normal and had left me with a bad headache.
Am I right in thinking that on each years p11d form the total fuel purchased by an individual is recorded and that whole amount is a benefit in kind from which bussiness miles can be calculated once personal miles have been accounted for.
From what I have read I know my colleague is in a pickle but information in a down to earth no jargon way.

Thanks

withabix

You are confusing Fuel Cards for company cars with Fuel Cars for your own car in place of a company car.

There is a taxable BIK for having a fuel card in your case UNLESS you reimburse your emplyer for ALL private fuel.

pinkhat

Ok I understand that there will be a taxable bik with the fuel and the card. I don't think I made my initial post clear. At this point in time does my old colleague need to worry about the taxman knocking on their door because they did not declare private miles. Would the company we worked for have provided hmrc with all the correct bik figures upon which my colleague would be taxed or would it be up to them to tell hmrc. I want to.advise them as best i can and if there is a case to answer I would like to give them the best advice

jimmo

The Income Tax fuel benefit charge for company cars is an all or nothing charge.

If your employer pays for your private fuel you will suffer the same fuel benefit tax charge regardless of whether your employer pays for 1 mile’s worth of private fuel or 20,000 miles.

It is very common for employers to charge you for private mileage but that has a dual purpose.

1) It avoids your employer subsidising your private motoring.

2) It avoids you being charged Income Tax and your employer being charged class 1A National Insurance on the fuel benefit scale charge.

I suppose the worst case scenario is that your friend has stolen money from his employer and/or evaded his tax liability as well as causing the employer to underpay its National Insurance.

Can you clarify the terms under which you worked?

pinkhat

Not sure will need to check. We were given a choice when we first started about private miles. I.e. who would pay for them. If we.are in worst case scenario and the issue dates back 5 years what advice is there to resolve any issue identified. Many thanks