Job offer company car and fuel card?

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

TadleyBaggie

When I had a fuel card, I had to pay the tax on the amount of privately used fuel. So effectively I was paying only 40% of the pump price, seemed like a good deal to me.

Nicola_Ed

Hi - assuming you are not reimbursing your employer for fuel used for private miles, you will pay tax based on a scale rate which is not dependent on the number of private miles travelled. I suggest you use the HMRC calculator to work out the income tax you will pay for the fuel card. I would compare the cost of paying for private fuel yourself with the income tax due on the fuel card.

http://cccfcalculator.hmrc.gov.uk/CCF0.aspx