ASK AN EXPERT: TRAVEL & HOLIDAYS. You've got a few more days to add your travel & holiday questions for deals expert MSE Oli

Petrol Card v Millage Allowance

Good evening,

I receive a monetary allowance to buy my own car. 

I also have the choice of having a fuel card or a mileage allowance. 

Can you help me decide / understand what is the best option for me to take? 

I will do around 20k business miles a year.

Thanks


Replies

  • savingwannabesavingwannabe Forumite
    16.6K Posts
    Part of the Furniture 10,000 Posts
    Forumite
    Hello can anyone help? I don't drive so I wouldn't know. 
    Aiming for a minimal spend 2022
  • milton1970milton1970 Forumite
    190 Posts
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite
    My experience would suggest that the rate paid in mileage allowance is usually below the actual cost (although oil price is down resulting in lower petrol costs) add to this that there is usually a tiered rate that results in lower rate above certain mileage 14K from memory.
    If your company pay above the HMRC approved rate it becomes taxable (in part)

    given you are doing 20K pa - go with the fuel card 👍

  • k3lvck3lvc Forumite
    4.2K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite

    given you are doing 20K pa - go with the fuel card 👍

    Depends on the car and it's economy, the mileage allowance, the car purchase allowance and other running costs together with the tax on the fuel card and what the OP's tax rate is. Despite doing a 70/30% split business vs private I've never managed to be in a situation where a fuel card would've been worthwhile in the last 20yrs
  • milton1970milton1970 Forumite
    190 Posts
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite
    Disagree - You should not pay tax on fuel card if only used for business purposes 
    Allowable rates are VERY low 
    Pay for your private fuel
  • edited 20 April 2020 at 12:31PM
    k3lvck3lvc Forumite
    4.2K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    edited 20 April 2020 at 12:31PM
    Disagree - You should not pay tax on fuel card if only used for business purposes 
    Allowable rates are VERY low 
    Pay for your private fuel
    Did you read the OP - they have an allowance for their own vehicle. Do you want to explain how this works for the OP's situation ? Very different from a company vehicle situation where you can leave it at work and have zero private usage 
This discussion has been closed.
Latest MSE News and Guides

Clubcard deadline looming

Swap your points for vouchers by Tuesday

MSE News

Best £1 you've ever spent?

Share your most impressive bargains

MSE Forum