Car fuel benefit hi

Frags

Hi guys,

Long old time since I've been in here but I'm desperate for some advice. I work in sales and have a company car, we are on an averaging scheme therefor I pay car benefit and fuel tax. I taxed for £4123 fuel benefit. Most people in our company seem very vague about how this works and how much fuel we are "entitled to" we use a fuel card and are told to just full up our cars as and when needed. Most people live quite far away from work and I don't, last week I was on holiday and did an unusually high amount of miles. It has been brought to my attention that I am now to pay for this fuel myself as it is "above average" my gripe with this is that I pay tax on my fuel and must people in the company do the best part of 20k miles a year and I do £7k. What I'm trying to get at is how do I calculate the amount of fuel I am allowed to use based on the tax benefit of £4123?

Any help would be gratefully received

Thanks

doningtonphil

Hello

as far as I an aware, the fuel benefit is a set figure based on figures set by hmrc and is in no way related to the number of miles you cover. Basically the question is "does your employer pay for ANY private mileage (which would include driving from home to your normal place of work)".

If yes, and if even only a few miles, then you would have to pay the tax - can't remember if this is based on emissions like company car tax is

Therefore the more miles you drive the better 'value' the tax is. However, your company are still giving you fuel so I imagine they have a right to limit how much they give you.

I reimburse my employer 12p per personal mile I drive. It works out way less than the tax I would have paid and it is costing my employer less. Is that an option available from your employer

Frags

Hi,


Many thanks for your replies. The company pays for all mileage both private and business and my fuel tax benefit is £4213 as set out on my PAYE coding notice from the HMRC. After speaking to them today my understanding is that £4213 is the amount of fuel the company submit to the HMRC that I will use. Therefor I am allowed to use up to and including that amount of fuel.


I therefor see no reasoning that they were allowed to ask me to pay for fuel that I have already been taxed on again as it didn't fit into their "Fair" usage policy (which none of us have heard of and isn't in our contract I may add)


Does this seem correct? It would make perfect sense that I am allowed to use up to £4213 worth of fuel a year as that is what I am taxed on as a car fuel benefit?

purdyoaten

blondebubbles wrote: »

That is not correct, the fuel benefit is calculated based on your cars CO2 emissions. It has nothing to do with how much fuel you use in the car.

Co2 emissions have an appropriate %. This % is calculated against HMRC's fixed rate of £21700 (for this year).

Yes and, of course, the real calculation is whether the TAX due on the car fuel benefit (somewhere between £824 and £1648 depending on the rate band) outweighs the cost of the fuel used for private mileage.

Can't believe the £21700 - last time I completed a P11D - it was £14400!

Frags

Then I have been misadvised by the HMRC?
So now i'm totally confused. My PAYE says my car benefit is £2595 and my car fuel is £4123.


So what exactly does this mean in layman's terms?


How much fuel am I allowed to use then?

Frags

My cars Co2 is 124 grams but we are not taxed on one specific car, as we use different cars some of the time we are taxed on the company car averaging scheme.

purdyoaten

Frags wrote: »

Then I have been misadvised by the HMRC?
So now i'm totally confused. My PAYE says my car benefit is £2595 and my car fuel is £4123.


So what exactly does this mean in layman's terms?


How much fuel am I allowed to use then?

If you have 1 mile of private fuel, your car fuel benefit is £4123. If you are a basic rate tax payer your tax will increase by £824.60 per annum. This will be doubled if you are higher rate.

If you have 100000 miles of private fuel, your car fuel benefit is £4123. If you are a basic rate tax payer your tax will increase by £824.60 per annum. This will be doubled if you are higher rate.

If the cost of your private mileage is significantly less than the extra tax I would consider asking for the fuel to be withdrawn.

purdyoaten

blondebubbles wrote: »

I'd jump at the chance to only pay £824 per year for fuel. I'm more like £1800!

Of course you would - unfortunately many just think of the extra tax bill. I once had a client who refused to claim his state pension of £173 p.w. in order to avoid the additional tax - he was happier with 0% of it than 80% of it!

Frags

So your saying I have £824 worth of fuel to spend or 10000 miles of private mileage to use?

Frags

I'm just not getting it? Its so frustrating.


All I want to know is:


1. If I am paying tax as a fuel benefit do I have to pay for any private fuel I use and if so how much of it?


2. If I don't have to pay private fuel how much am I allowed to use based on the fuel tax benefit on my PAYE.

Frags

So what is the purpose of the fuel tax benefit if there are no rules as to what fuel or mileage I am allowed to do?


I'm paying tax on an unknown amount of fuel or mileage then?