Company Car Fuel Payments

RoyLittle0

I have and need a company car for my work, I am a service engineer and travel to customer sites all over the country, my company provides me with a car and I am taxed on that car as a benefit in kind, all okay so far.


We have to pay for the fuel out of our own pocket and we can claim back mileage used for company business, we are paid at a rate set by the government, for me that is £0.09 per mile, so if I do 500 miles a week I get £45 which is about what it costs me with my fuel economy I get from the car that they have provided me, the money gets paid back to me in my monthly pay packet and I am being taxed on that amount, due to my earnings I pay 40% tax on this.


Is it right that they can tax me on the money I have initially paid out for fuel and claim back? it can be as much as £300 a month and I only get back £180 and it costs me the full £300 to use my company car for business use!! so it actually costs me money to drive to work.!!


I cant seem to find any help on the government site

Darksparkle

You should not be taxed if reimbursed the advisory fuel rates.

It is confirmed here - https://www.gov.uk/government/publications/advisory-fuel-rates/when-you-can-use-advisory-fuel-rates

https://www.gov.uk/government/publications/advisory-fuel-rates/advisory-fuel-rates-from-1-december-2015

You should only be taxed if reimbursed more than this or for private fuel eg your ordinary commute is private.

Ask your employer why they are taxing you.