Tax help with company issued fuel card ?

leesykoi

Hi,

I currently work for a company and opt out of the company car scheme and take an allowance which i am taxed on. I pay for my own fuel for business travel and claim back the fuel costs at the company issued rate each month. I then claim tax relief on the difference between the company rate and the HMRC rate on my yearly self assessment.

I have been offered a new position at a different company where i wish to opt out of the car scheme again. This is OK with them however they have told me that i cannot do what i do now with regard to business mileage claims and MUST take a company fuel card instead.

Will i be worse off ??? Confused !!!

Any help would be great, thks.

Lee.

Dal_Whinnie

You will need to check the details of the scheme but from a tax perspective (not sure re NI) the fuel scale charges will not apply since they only apply where you are also provided with a company car. You therefore have to compare the amount the company spends on fuel for you and compare this with the business miles you drive times the appropriate HMRC mileage rate (45p/25p?). If the company pays for all your fuel then you will be taxed on the excess over the business mileage amount. The company should be able to give you details of any agreement they have reached with HMRC