Removal of fuel card

SparkyMark123 · 5 July 2019 at 11:13AM

My workplace is currently undergoing consulatation for the removal of fuel card and car allowance basic facts as follows

Employed for 11 years
Currently earn £47000 per annum
Car Allowance cost is £6700 per annum on my work benefits
Fuel Card is £7500 per annum on my work benefits

Work are proposing to replace the car with £4500 p/a car allowance and claim the benefit from loosing the fuel card will be that I can claim business mileage. However I live 30 miles each way from my local office and would not be able to claim this and all private mileage I would need to pay for

My question is legally can they remove the fuel card with no benefit replacement?

LilElvis · 5 July 2019 at 11:39AM

Have you looked in your staff handbook to see what it says about your benefits? In calculating whether you are worse off under the proposed scheme you will need to factor in the substantial amount of tax you are currently paying on both the car and fuel benefit. My husband changed to a car allowance in March and I worked out that he will be better off. Don't forget that for any business miles you will be able to claim tax relief on any difference between the HMRC mileage rates and the rate at which your employer reimburses you (if this is lower).

Marcon · 5 July 2019 at 4:11PM

The short answer is yes, if they are determined to do so and they follow the correct procedures - which they seem to be doing. The consultation period gives you a chance to express your concerns. Have you done so?

SparkyMark123 · 5 July 2019 at 4:55PM

Yes I have asked for a individual consultation. I’m aware that they can do this but my question is am I entitled to any re-comerse for the loss of the fuel card in a similar way I can for the loss of car?

LilElvis · 5 July 2019 at 5:06PM

You've already been paying £3,000 per annum in tax on the fuel benefit - money you won't be paying in future. That saving will cover the fuel cost of your commute.

theoretica · 5 July 2019 at 7:40PM

If I understand fuel cads correctly, the more personal driving you do, the bigger the benefit from your employers. Many companies want to give a more environmentally friendly impression.