Fuel Card Benefits

DaleRKD

Hi.

I am being told by everyone at work that is more beneficial for me to use a fuel card with my company car but any way i look at it it looks cheaper to pay for my fuel personally and then claim back my business mileage.

The current mileage rate is only 9p so its not as good as it was but still looks cheaper to me. My current month example is -

I put in £140 in fuel and did 1577 miles total.

1200.8 were business, 376.2 were private.

Now by my calculations, paying the £140 and then claiming back the 1200.8 miles at 9p per miles means my month of fuel cost me £31.93, whereas if i paid on a fuel card then got my 376.2 miles taken from my pay at 9p per mile this would have cost me £33.86 thereby making fuel cards more expensive.

I know this is not a huge difference but last month the difference was more like £30 in favour of cash so it does add up.

I just cant see why they are saying a fuel card is better. Are there some tax benefits with a fuel card im not aware of?

Thanks

Darksparkle

What is the value of the fuel benefit for your car?

I'm some cases it can be cheaper to pay tax on the fuel benefit rather than paying back private miles. Depends on how many private miles you do though, it won't benefit everyone.

DaleRKD

I dont know what you mean by fuel benefit?

I dont get any private miles from the company, even with the fuel card they take the private miles from my pay.

Thanks

Darksparkle

Most people I know with a fuel card don't repay their private fuel. They pay tax on a fuel benefit instead (the same as you'll be paying car benefit on your company car).

What's the fuel type and co2 of your car?

DaleRKD

Ahh no we dont get a fuel benefit, we just pay our private miles which is taken from our paycheck once the business miles are deducted.

Or in my case they only reimburse me for my business miles.

All i am wanting to know is why people here seem to think that a fuel card is more efficient when my calculations suggest otherwise.

Its a diesel and the co2 is 91 i think. Not sure.