Calculating benefit of fuel card. No company car

Bicks60

Hello All

I am struggling to work out how to calculate the benefit to me of a fuel card that my company provides. Up until earlier this year I had a company car and you could calculate the tax benefit of the fuel card based on the emissions of the company car. Now that the car has gone, could anyone please help me understand the calculation of the fuel card. Does my now privately owned car play a part in calculating the benefit of the fuel card or is it excluded from the calculation. My total mileage is around 25000 a year and is mostly private mileage. The company want to cease the fuel card and replace it with an additional sum to my salary. I want to try and calculate, fairly, what that amount should be. Any guidance would be very welcome.

Thanks

Andy

Darksparkle

You'll pay tax on the actual value on petrol using the fuel card.

sheramber

The amount you spend on the fuel card is counted as extra salary on which you pay tax at your relevant rate.

So you spend £20 on fuel-

if liable at 20% you pay tax of £5 on that spend so that fuel cost you £5 rather than £20

dori2o

When you had the company car did the employer provide all fuel via the fuel card or just the proportion applicable to the mileage, i.e. did you have to repay them for the private mileage?

If they provided all the fuel, and the additional salary they want to give you is for the same, then the easiest way to claculate what the additional salary should be would be to look at how much fuel has been paid for on the card over the past 12 months and use that figure. If you do similar mileage each month, it has been that way for the past 12 months,and you expect it to continue for the foreseeable future then hat is as good an estimate as any.

You could look at a longer/shorter period of time and take an average based on that timeframe.

If your employer only provides the fuel card for business mileage and not private mileage, and you have been reimbursing your employer for the private mileage, then simply calculate the difference between what you have charged to the card, less what you have repaid to the employer. This will give you the value of the business mileage which you can then calculate the annual average of.

Bicks60

Thanks all these are really helpful answers. So my employer covered me for all fuel private and business. So my understanding is that if my fuel for the year is £3000, and I'm paying tax at 40%, the tax would be £1200, so the benefit to me would be £1800. I would need to see that amount, £1800 land in my pay, so they would have to pay the gross of £1800 in order for me to break even. So in fact to be able to pay me the £1800 in my pay they would actually need to pay £3000. Does that sound correct?