Private fuel tax benefit-help!

ruthtc

Hello all,

Hopefully a very quick question, but I can't tell exactly the answer from the hmrc website...

I currently have a company car for which I claim business miles (and so pay all private mileage). I am due to change this car in September and have been asked if I want to opt in to my private fuel being paid at that point. Ive looked at my annual mileage and over 12 months, it would be worth me doing this....

However-Im not clear whether I can prorate the benefit charge for this tqx year given I get the car in September. I can see an example on hmrc which sets out for having 2 different cars in a year and it looks possible, but I'm not 100%. I obviously don't want to pay twice for April-sept(ie effectively pay the private fuel tax charge but also have paid private mileage).

Any help much appreciated!

zygurat789

ruthtc wrote: »

Hello all,

Hopefully a very quick question, but I can't tell exactly the answer from the hmrc website...

I currently have a company car for which I claim business miles (and so pay all private mileage). I am due to change this car in September and have been asked if I want to opt in to my private fuel being paid at that point. Ive looked at my annual mileage and over 12 months, it would be worth me doing this....

However-Im not clear whether I can prorate the benefit charge for this tqx year given I get the car in September. I can see an example on hmrc which sets out for having 2 different cars in a year and it looks possible, but I'm not 100%. I obviously don't want to pay twice for April-sept(ie effectively pay the private fuel tax charge but also have paid private mileage).

Any help much appreciated!

No pro-rataing.

Gas_Powered_Toothbrush

Fuel benefit can only be apportioned if it ceases during a tax year. there is no apportioning for unused days prior to getting the benefit.

So, for (an extreme) example, if your employer gives you private fuel benefit on April 4th, you'll be taxed on a full year's worth.

ruthtc

Thanks for the responses, can I just check that this still applies given I'm only thinking of taking private fuel when I get a car in sept. The hmrc advice seems to reference that benefits relate to when a car is 'available'...isn't my change of car only available from sept?

Pennywise

Gas_Powered_Toothbrush wrote: »

Fuel benefit can only be apportioned if it ceases during a tax year. there is no apportioning for unused days prior to getting the benefit.

So, for (an extreme) example, if your employer gives you private fuel benefit on April 4th, you'll be taxed on a full year's worth.

But in the OPs case, it's a different car so the fuel benefit will be pro-rata'd for the period during which s/he had the new car, not backdated to the start of the tax year for the old car.

"It does not matter that fuel may still be provided for a different car because this legislation operates on a car-by-car basis. Facts concerning Car 1 have no effect on liabilities in connection with Car 2."


As per the HMRC manual.

jimmo

http://www.hmrc.gov.uk/manuals/eimanual/EIM25605.htm