Personal Car / Company Car & Fuel Card inc Personal Fuel

KevWal

Hi

Any help gratefully received on the questions below:

Firstly, I have the option of a company car - but I choose to use my personal car and take the cash allowance (taxed at 40% rate), as I believe that works out better for me - I typically buy a 1 year old mid range family car with cash and keep it for 6 to 8 years with modest servicing costs, my insurance costs are low.

Does that seem a sensible decision?

Secondly, I have a Company Fuel Card that covers my business and my personal fuel - it has been said to me recently that this is very tax inefficient and costing me more than it is worth - but I don't know how to calculate that.

Currently all fuel I buy each month is taxed at source in my pay slip, then in my tax return I claim 45p per business mile, minus the fuel cost (as this is already paid to me by the company), plus the tax deducted from that fuel (as I shouldn't be taxed on fuel used for business purposes, only personal purposes).

Is that correct? Is this costing me more than just buying my own personal fuel?

Thanks very much
Kev

Darksparkle

Company car v cash allowance would really depend on the figures.

If company car you wouldn't pay for insurance, repairs, MOT etc. Taxable amount would depend on list price, co2 etc

You could estimate it here - https://www.gov.uk/tax-company-benefits/tax-on-company-cars