Fuel card without a company car

Workerbee999

Hi

I have asked this topic before, but after a chance discussion with our company head of reward I want to double check.

I am taxed on the value of fuel I actually spend on this card through my P11d - and have been for around the last 16 years. The benefit on the P11d is clearly highlighted as being related to a fuel card. In addition I have previously successfully reclaimed an element of this that related to business miles through a mileage claim where I fully explained what the benefit related to in my letter.

However, today, the head of reward commented to me that it might not be worth having going forwards as the fixed amount being taxed is going up. When I explained this is not relevant to me because I do not have a company car and so are taxed on the actual spend instead, they seemed very shocked and told me I was wrong.

I would have thought that if I am wrong HMRC have had many opportunities to highlight this over the years - especially when I wrote to them about it, but the conversation has led me to doubt myself a bit as this person is our expert in the company.

Please can anyone put my mind at rest again!

Thanks

madgagoo

You are correct. There are two things here:

1. You get a benefit in kind provided - fuel. You have to pay tax on the value of that benefit - the cost of the fuel provided. The scale charge your employer has mentioned is indeed only relevant if you have a company car, ergo not applicable in your case.

2. You can claim 45p per mile expense for any miles you cover on business in performance of your duties. This reduces to 20p per mile after the first 10,000 miles in the tax year.

The two are separate - you don't have to have the fuel card to claim mileage and you would pay tax on the fuel, even if you cover no eligible business miles.

Workerbee999

Thanks so much for confirming what I thought. Phew!