Company car and fuel card for new role

bloke91

Hi

I currently have my own car and have been offered a new role which includes a company car and fuel card for both business and private mileage.

The car and fuel card is a large consideration for the role, particularly as the new role will mean I would have to pay about 150 pound extra a month to travel to the office and back using my own car.

I think doing some rough calculations an Audi A4 2.0 would cost me about 145 pound a month in tax as I pay 40% tax etc. But I am not sure about the fuel card, I don't think I would do much business miles so how would using that for private use work? Is a fuel card worth it vs paying 150 pound in petrol for the communte to and from work each month? I read some where a fuel card could cost about 1000 pound a year in tax if used for private mileage?

The additional fuel costs are a big cost consideration in making a decision on the offer.

Any help/advice would be appreciated

fredward999

Hi,

I have had a company car for 8 years, it is fairly easy to calculate.. do you know what your fuel card benefit cost is?

Assuming it is around £3,800 (which I would expect on an A4), your breakeven point will be around 9,500 miles per year.

Thus, if you travel more personal miles than this you will be better off, anything less than this and you should consider an alternative arrangement.

There are plenty of websites out there that will help with the calculations. (try ComCar)

I personally think if it is close, go with the fuel card. It's one less thing to worry about and whenever you want to travel somewhere you don't think/ worry about the cost of fuel and prices going up etc.

fredward999

P.S just having a quick maths check for you.

£3800 benefit = £1520 cost per year at 40% tax
= £126 per month cost for the fuel card

Given that your trip to the office is £150 per month alone you should probably opt for the fuel card.