Car fuel benefit hi

purdyoaten

Frags wrote: »

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?

You are being taxed on a fixed fuel charge because you have your fuel paid for, some of which is private. You should not pay anything other than the extra tax as I have documented and definitely not anything for the fuel itself - the employer pays for all fuel!


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.

As much as you want. The fuel charge remains the same regardless of the amount used.

See above!

purdyoaten

Frags wrote: »

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?

effectively. How much private mileage do you undertake? If it is 1000 miles, the charge to fuel benefit is much too high!
If it is 50000 - that is a different matter. So, is it worth paying additional tax of £824 in exchange for having ALL of your fuel, business and private, paid for by your employer, no matter how many miles you cover? That is the question.

Frags

Purdyoaten thank you that's what I needed to know!!!


To be fair my annual mileage is pretty low, around 7-8k a year. With this in mind do you think I would be better off not paying the fuel benefit?

Frags

blondebubbles wrote: »

The employer has no requirement to pay for all the fuel though. If they want the employee to pay for some of the private fuel then they can do this. The fuel benefit charge would still apply.

Then whats the purpose of the fuel benefit?

purdyoaten

Frags wrote: »

Purdyoaten thank you that's what I needed to know!!!


To be fair my annual mileage is pretty low, around 7-8k a year. With this in mind do you think I would be better off not paying the fuel benefit?

To me that is a fuel cost of £1300-£1400 per year. Depends on the business mileage. If there is more than about 3000, I would dump the free fuel and claim the mileage from the employer for the business element.

purdyoaten

Frags wrote: »

Then whats the purpose of the fuel benefit?

The purpose is tax. I am the big tax man and I know that you did some private mileage in your company car and did not reimburse your employer for your fuel. That quick trip to the garage to buy a box of chocolates on Valentine's day was definitely private and your charge for this one slip is £4123. It is not my fault if you didn't know that you could do a sponsored drive around Europe for your local football team and be landed with the same charge.

Death and taxes!