Fuel car taxation question

dg8123

Hello all:wave:

I am about to receive a fuel card and have a couple questions about its tax implication. I will be expected to repay my private mileage at the IR's standard rate. From what i can gather that means i will end up owing my company approx 18p per mile (engine over 2L) which is actually more than i would expect to pay if i paid for the petrol myself. Or am i missing something?

In regards to the business mileage, am i right in that i will have to pay tax and NI on the sum of all the fuel i have used. Is that right?


What benefits are there to this?

Thanks

PasturesNew

I have no idea, never having had one, but making it up, I'd say:

You are missing the running costs of a car.

If you drive a car you pay for petrol, but also your tyres are wearing out, your service is closer etc etc.

So the extra cost over the actual cost of the petrol is for the "other stuff"

Re other questions:
a) no idea
b) no idea

dg8123

Other costs dont come into this equation as this isnt a company car vs personal car type query ( i think ).

Zazen999

Hi dg

Do you have a company car already? ie what is the current situation and what are the changes being made?

dg8123

Hi.
No i dont have a company car at the moment. I will get an allowance to buy to my own car which i will be expected to use for business.

Zazen999

Hi.
Sorry, where does the fuel card come into it? Usually you get an allowance, and claim a certain amount per business mile; and claim the rest [up to 40p per mile] back from the taxman. Fuel cards usually only come with company cars - but them companies are known to swing things their way if at all possible.

talkshop

18p/mile is based on the car doing 30 miles/gallon which is probably about right for a petrol car over 2.0L engine.

dg8123

oh sorry. just seen that my title is meant to read fuel card.. not car.

So basically i am trying to figure out the how taxation on the fuel card works (company pays for everything and i repay the private mileage at 18p/mile)